ABN AMRO is Reaping Rewards from Restructuring Plan
Dow Jones
Oct 16
1052 GMT - ABN AMRO Bank is delivering on its restructuring plan, with scope for further upgrades, Keefe, Bruyette and Woods' Hari Sivakumaran and Mo Ghalayini write. The rate environment is better for the Dutch bank than expected at the 2025 capital markets day, while staff reductions are running ahead of schedule. As a result, there is scope for further net interest income and cost upgrades, the analysts note. KBW expects the payout ratio to rise above 100% from 2027, with total yields above 10% a year. The bank's valuation remains attractive despite a strong share price performance, the analysts say. KBW raises its recommendation on the stock to outperform from market perform, and increases the target price to 50 euros from 44 euros. Shares are up 1.9% at 40.98 euros.
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