ABN Amro has again lost more money on money laundering checks. The bank has set aside 50 million euros for this. In addition, the bank will increase the rates for current accounts as of 1 July to absorb part of those costs.
ABN announced a quarterly profit of 295 million euros. Last year there was a loss in the same quarter, partly due to a settlement with the Public Prosecution Service. Due to inadequate controls on money laundering, the bank had to pay 480 million euros.
More expensive checking account
Although ABN Amro made a profit for the fourth quarter in a row, according to the bank it is necessary to increase the costs for the current account. The rate for a current account will increase by 50 percent from 1.95 per month to 2.95. The costs for a second debit card increase by almost 30 percent.
“This is necessary because the costs we incur for keeping payment transactions safe are increasing,” says Robert Swaak, the bank’s chief executive. “One in five ABN Amro employees is working on this. You cannot avoid passing on part of those costs. In addition, we continue to invest in product innovation and product development.”
Earlier this year, the Consumers’ Association calculated that the costs for a current account at Dutch banks have increased by 42 percent in the past 5 years.
War
ABN Amro is relatively unaffected by the war in Ukraine. This is because the bank does relatively little business with Russia and Ukraine. At competitor ING, profits halved because of the war in Russia.
ABN expects that more customers will run into problems because economic growth slows and inflation rises. To absorb those blows, the bank has set aside 62 million in the noose pot.
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