ABN AMRO Bank NV said Wednesday that it plans to exit all non-European corporate banking activities and focus on the Netherlands and northwest Europe, as it reported a swing to net loss for the second quarter of the year after booking a large impairment charge.
The Dutch lender said the corporate and institutional banking unit will focus on clients in northwest Europe and clearing while trade and commodity finance activities will be completely discontinued. Natural resources and transportation and logistics will focus on European clients only, ABN AMRO said.
Net loss for the quarter was 5 million euros ($5.9 million) compared with a profit of EUR693 million for the year-earlier period and a consensus loss of EUR121.8 million, taken from FactSet and based on six analysts' estimates.
ABN AMRO booked an impairment charge for the period of EUR703 billion compared with EUR129 million for the second quarter in 2019.
The lender's fully loaded CET1 ratio--a measure of a bank's financial strength--stood at 17.3%, the same as on March 31 and compared with 18% on June 30, 2019.
ABN AMRO said it remains committed to resuming dividends when conditions allow, but won't be making any payments until 2021 at the earliest following the recommendation of the European Central Bank.
Write to Ian Walker at ian.walker@wsj.com
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