ABN AMRO Bank NV NLDR
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€88.00 | Dxfjnxy | Zbktwrmlj |
ABN Amro's Capital Return and Net Interest Margin Surprise on Upside in Q4
We base our investment case for narrow-moat ABN Amro on the group's gearing to higher interest rates and potential to return excess capital to shareholders. Fourth-quarter earnings supported our view. ABN Amro announced a EUR 500 million share buyback, and net interest income for the final quarter was 11% ahead of consensus expectations. However, we baked this into our valuation and do not expect to make material changes to our EUR 17 fair value estimate. After a 43% share price rally over the last three months, the investment case is less compelling for ABN Amro, which is trading at 0.9 times our fair value estimate.