ABN AMRO says 2026 profitability is running ahead of plan as cost cuts land early

ABN AMRO, one of the Netherlands’ largest banks, said its 2026 performance is running ahead of plan across both profitability and capital metrics, driven in part by a cost-cutting program that is landing faster than management initially projected.

The bank reported second-quarter 2026 net profit of €781 million, a 29% increase from a year earlier, with return on equity improving to 12.1%. Management attributed part of the improvement to an expense-reduction program that has already achieved roughly half of its targeted headcount reduction and €300 million in cost savings — progress the bank said came in ahead of its original timeline. As a result, ABN AMRO lowered its full-year 2026 cost guidance to €5.5 billion.

On capital, the bank’s CET1 ratio — a core measure of a bank’s buffer against losses — reached 15.9%, comfortably above regulatory minimums. ABN AMRO has a standing policy of distributing up to 100% of net profit to shareholders and has committed to returning at least €7.5 billion between 2026 and 2028. Management was careful to note, however, that any decision on distributions beyond the standing policy awaits its formal capital assessment, which the bank conducts in the fourth quarter, and that it does not speculate on additional payouts ahead of that review.

The results add ABN AMRO to a list of European lenders — including ING, which recently raised its own multi-year profitability target — reporting that cost discipline and steady lending activity are outperforming initial 2026 plans, even as regional banks elsewhere navigate a more mixed interest-rate environment.