ABN Amro reported a smaller-than-expected fall in third-quarter profit, driven by sustained improvement in net interest income (NII) and strong performance of fees, the Dutch lender said.

ABN Amro, one of three dominant banks in the Netherlands, said net profit fell 9 per cent year on year to 690 million euros, beating an average forecast of 528 million euros in a company-compiled consensus.

“The resilient Dutch economy and thriving housing market continued to benefit our results… We saw our mortgage book grow by 1.6 billion euros this quarter and year-to-date we remain market leader in new production,” ABN Amro’s CEO Robert Swaak said.

The lender said it expects its full-year NII above 6.4 billion euros, slightly higher than the previous forecast. The net interest income for the period rose 7 per cent to 1.64 billion euros.

The company’s CET1 ratio, a measure of capital strength for European banks that compare their core capital against risk-weighted assets, fell to 14.1 per cent, against analysts’ estimates of 13.9 per cent.

The higher the ratio, the better it is for the lender as any losses occurring are first deducted from this tier.

ABN Amro said that it postponed its assessment of capital position, including the potential room for a share buyback until its second-quarter 2025 results.

It last shared its profits with shareholders via buyback for 500 million euros in 2023.

The quarterly costs climbed as the new collective labour agreement kicked in and the bank upscaled its resources. Third-quarter personnel expenses rose 14 per cent on the ear to 718 million euros.

“We still expect full-year costs to be around 5.3 billion euros,” said Swaak, reiterating the lender’s previous forecast.