Credit rating abn amro

Regulatory Disclosures. We have reviewed our ratings on eight financial institutions in the Netherlands under our revised "Financial Institutions Rating Methodology".

The Outlook is Stable. A full list of rating actions is below. Strong Standalone Credit Profile: ABN AMRO's ratings reflect its strong and fairly diversified universal banking business model, complemented by a solid European private banking foothold, and its moderate risk profile, which results in resilient asset quality. The bank's capitalisation, funding and liquidity are rating strengths. The ratings also consider the bank's adequate profitability with solid earnings but cost efficiency that is weaker than peers. It offers a broad range of products and services to Dutch retail, corporate and wealth management clients. Solid positions in these segments in selected north-west European markets and a leading global position in international clearing services provides moderate geographical and business diversification.

Credit rating abn amro

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Negative rating pressure could also arise if ABN AMRO experiences outsized losses from its core operations, as this would suggest some weaknesses in its risk controls and governance.

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A full list of rating actions is below. The revision of the Outlook reflects the bank's better than anticipated financial performance during the pandemic and the stabilisation of the Dutch operating environment. Fitch's updated economic assumptions for the Netherlands and northwest Europe ABN AMRO's core markets indicate strong economic recovery, despite some remaining risks related to the pandemic, supply chain disruptions and rising energy prices. The bank's strong risk-weighted capital ratios, funding and liquidity profile are rating strengths. Credit losses should increase next year but from a low base, and will remain notably below the normalised level, as we expect the bank to release some of its Covidrelated management overlay. The bank's strategic focus on domestic and northwest Europe customers in well-known and moderate risk profile industries is positive for asset quality. The bank's profitability metrics have structurally deteriorated recently, due to deposit margin compression, muted corporate loan demand and costly business restructuring and an anti-money laundering AML remediation programme. The bank's earnings benefit from significant contribution from low-risk retail banking, healthy diversification in fee income and deleveraging of non-core assets, which should contain future credit losses.

Credit rating abn amro

The Outlook is Stable. A full list of rating actions is below. Strong Standalone Credit Profile: ABN AMRO's ratings reflect its strong and fairly diversified universal banking business model, complemented by a solid European private banking foothold, and its moderate risk profile, which results in resilient asset quality. The bank's capitalisation, funding and liquidity are rating strengths. The ratings also consider the bank's adequate profitability with solid earnings but cost efficiency that is weaker than peers. It offers a broad range of products and services to Dutch retail, corporate and wealth management clients. Solid positions in these segments in selected north-west European markets and a leading global position in international clearing services provides moderate geographical and business diversification. Moderate Risk Appetite, Sound Controls: ABN AMRO's underwriting standards are prudent, with a strategic focus on low-risk domestic mortgage loans and well-executed exit from riskier and cyclical sectors such as energy, shipping and trade and commodity finance. Risk controls are robust and sophisticated, with granular limits. The bank's appetite for traded market risk is low.

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Positive rating action is unlikely in the short term as it would require further material diversification of the bank's business model and significant market share gains in ABN AMRO's core segments. A Regulatory Disclosures. The Outlook is Stable. We expect higher-than-anticipated AML-related expenses and necessary investments in data and IT to weigh on profitability in the near term and the bank's cost efficiency is likely to remain generally weaker than similarly rated northern Europe peers. However, cost inflation, including from resources allocated to its anti-money laundering AML remediation programme, has thwarted its ability to meet its cost target. They are also sensitive to Fitch reassessing their non-performance risk relative to the risk captured in the VR. GDP growth will remain modest with still high interest rates and infla Browse Ratings By Practice. Resolution Counterparty Rating. We have affirmed the ratings on these institutions, and the outlooks are unchanged. Negative rating pressure could also arise if ABN AMRO experiences outsized losses from its core operations, as this would suggest some weaknesses in its risk controls and governance. The Tier 2 debt rating is notched twice from the VR to reflect the higher loss severity of this debt class. Structured Finance: Covered Bonds.

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The Outlook is Stable. However, cost inflation, including from resources allocated to its anti-money laundering AML remediation programme, has thwarted its ability to meet its cost target. A-1 Regulatory Disclosures. Persisting Near-Term Cost Pressure: The bank has made progress in cutting non-staff-related expenses as a result of its restructuring. Per-article purchases are managed by Alacra. LT IDR. Strong Standalone Credit Profile: ABN AMRO's ratings reflect its strong and fairly diversified universal banking business model, complemented by a solid European private banking foothold, and its moderate risk profile, which results in resilient asset quality. We have affirmed the ratings on these institutions, and the outlooks are unchanged. Structured Finance: Covered Bonds. It offers a broad range of products and services to Dutch retail, corporate and wealth management clients. We expect higher-than-anticipated AML-related expenses and necessary investments in data and IT to weigh on profitability in the near term and the bank's cost efficiency is likely to remain generally weaker than similarly rated northern Europe peers. Visit our Privacy Policy to learn more or manage your personal preferences in our Tool.