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.