ABN Amro records €395 million loss in first quarter
ABN Amro suffered a loss of 395 million euros in the first quarter of this year. Like with ING, the disappointing results had a lot to do with loans to companies that may not be repaid due to the coronavirus crisis. ABN Amro had to set 1.1 billion euros aside to potentially cover these loans, NU.nl reports.
A large proportion of the set aside money is to cover two customers. At the end of March, the bank announced it lost 235 million euros from a customer of the ABN Amro Clearing department. And another 225 million euros had to be set aside for a large customer in the oil trade, a spokesperson for the bank said to NU.nl. "There a loan may not come back."
ABN Amro also earmarked another 511 million euros for loans and mortgages that may not be repaid due the coronavirus crisis and the reduced demand for oil, which set oil prices plummeting.
Finally, the bank set aside 140 million euros as a "regular provision" for setbacks that are not related to the oil price or the coronavirus crisis.
This is the first figures announced by ABN Amro's new CEO Robert Swaak. He called it a "challenging but also exciting time" to become top man at ABN.