The retail banking arm of Dutch lender ABN Amro has posted an underlying profit of EUR319m for the third quarter of 2015, down 5% compared to EUR336m in the year-ago quarter.
The unit’s operating income decreased 1% to EUR988m from EUR994m in the third quarter of 2014. Net interest income stood at EUR853m compared to EUR855m a year ago.
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The retail banking arm’s operating expenses increased 7% to EUR510m from EUR475m in the third quarter of 2014.
Overall, the group’s underlying profit for the quarter was EUR509m, a rise of 13% from EUR450m in the year-ago quarter.
ABN AMRO Group chairman of the managing board Gerrit Zalm said: "In the third quarter of 2015 we raised our financial targets, posted a good set of financial results, successfully raised EUR 1 billion of Additional Tier 1 capital and continued preparing for the bank’s intended IPO.
"First of all, this past September we announced that we had raised two of the three financial targets and added a new one following a careful review of our financial performance. The current targets are a fully-loaded Common Equity Tier 1 ratio of 11.5-13.5%, a cost/income ratio of 56-60% by 2017, a return on equity of 10-13% in the coming years and, as a new target, a dividend payout ratio as from and over the full year 2017 of 50%."
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