Dutch bank ABN Amro resumes dividend payments as Q2 net profit beats

Dutch bank ABN Amro said on Wednesday it would resume dividend payments as an economic recovery in the Netherlands had helped a stronger-than-expected bounce in net profit. ABN Amsterdam reported that net profit increased to 393 million euros ($460.48 Million) in the second quarter. This was due to coronavirus restrictions being eased and companies slowly resuming business. A poll of analysts conducted by the company predicted a net profit average of 266 millions euros in the April-June period. Chief Executive Robert Swaak stated that although the Netherlands has a strong government support, the demand for corporate loans is still low. However, it is showing signs to stabilise and the pipeline is improving. ABN, a large state-owned company, released 79 million Euros of impairments during the coronavirus crises. This partially offset a sharp decline in net interest income due to low rates continuing to hurt its profit margins. After a 11% drop in net interest income during the first three months 2021, analysts were disappointed that net interest income dropped 14% to 1.3 million euros. ABN stated that its capital position was strong and it could pay out suspended dividends in October 2019 over 2019, and to continue to pay 50% of its net profits out to shareholders for the time being.