ABN Amro jumps as GS ups rating to 'buy' on rising returns potential

ABN Amro Bank NV

03/10/2025 08:19

** Shares in Dutch lender ABN Amro ABNd.AS rise close to 3%, to its highest in more than a week, after Goldman Sachs upgraded its rating, citing potential for higher returns

** The brokerage expects "significant" higher returns over the next three years driven by improvements in revenues and operations

** "We expect the NII (net interest income) to expand from 6.4 billion euros  ($7.50 billion)this year to 7.4 billion euros  ($8.67 billion) in 2028", say analysts

** The brokerage also expects the management to focus on higher returns at the upcoming Investor Day, as it forecasts ROTE growth from around 9% this year to roughly 12.5% in 2028

** "The combination of higher profitability, improved RWA (risk-weighted assets) management, and lower CET1% ratio provide scope for significant capital distribution", say analysts as they expect around 8.5 billion euros in shareholders returns via dividends and buybacks

** Out of 17 analysts that cover ABN Amro, ten rate the stock "strong buy" or "buy, ​five rate "hold", and two​ rate the stock "strong sell" or "sell" - LSEG data

($1 = 0.8531 euros)

 (Reporting by Mateusz Rabiega)

 ((Mateusz.rabiega@thomsonreuters.com))