ABN Amro won't pay dividend for 2020 after annual loss

[AMSTERDAM] ABN Amro Bank said it won't pay a dividend for 2020 after posting an annual loss of about 45 million euros (S$72.3 million) as negative interest rates weigh on returns.

The bank said it remains "committed to resuming payments of dividends sustainably" after posting a surprise profit of 54 million euros in the fourth quarter, compared with estimates for a loss of 4.07 million euros. The Dutch lender also said it plans to name Lars Kramer as chief financial officer to replace the outgoing Clifford Abrahams.

Chief executive officer Robert Swaak, who took over in April last year, has started a retreat from large parts of the investment banking business as he focuses on cost cutting and digitisation to restore profitability. During 2020, the lender was hit by large losses from some individual clients as well as rising provisions to repair damage caused by the pandemic.

"Based on the ECB's revised recommendation and the loss recorded in 2020, regrettably no dividend will be proposed over 2020," Mr Swaak said in the statement.

Shares of ABN Amro, which is majority-owned by the Dutch state, have dropped by almost 50 per cent in the last 12 months, giving the company a market value of 8 billion euros.

BLOOMBERG