Is ABN AMRO (ENXTAM:ABN) Facing a Prolonged Margin Squeeze Amid Consistent Earnings Pressure?

• ABN AMRO Bank N.V. recently reported its earnings for the third quarter and first nine months of 2025, disclosing a decrease in both net interest income and net income compared to the prior year.
• This marks a consecutive period of lower basic earnings per share from continuing operations, signaling ongoing pressure on the bank’s profitability.
• We’ll explore how this continued earnings decline sharpens questions around ABN AMRO’s future profitability and margin sustainability.

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ABN AMRO Bank Investment Narrative Recap

To own ABN AMRO Bank stock, investors need to believe that the group’s focus on digital transformation, sustainable finance, and cost efficiency can stabilize earnings and safeguard margins, even as traditional banking faces long-term pressures. The latest earnings report’s drop in both net interest and net income heightens near-term concern about profitability, but does not materially impact the bank’s largest catalyst: the push to modernize its core banking offering and rebuild margin resilience. The main short-term risk remains that persistent regulatory headwinds and lagging fee income could further erode earnings.

Among recent developments, the EUR 250 million share buyback, completed shortly before the earnings release, stands out. While this move underscores management’s confidence in returning capital to shareholders, it also arrives at a moment when underlying earnings are increasingly under pressure, reinforcing the importance of balance sheet strength and ongoing cost discipline as catalysts for future margin recovery.

But against the promise of modernization and resilience, one risk that investors should keep front of mind is...

Read the full narrative on ABN AMRO Bank (it's free!)

ABN AMRO Bank's outlook forecasts €9.5 billion in revenue and €2.0 billion in earnings by 2028. This assumes annual revenue growth of 2.4%, but a decrease in earnings of €0.1 billion from the current €2.1 billion.

Uncover how ABN AMRO Bank's forecasts yield a €28.15 fair value, in line with its current price.

Exploring Other Perspectives

Seven private investors in the Simply Wall St Community pegged fair value for ABN AMRO Bank between €15 and €53.85, with the current share price at the lower end. While forecasts for digital growth drive optimism, persistent regulatory and fee income challenges mean opinions about future performance remain widely split, see how your outlook compares to others in the community.

Explore 7 other fair value estimates on ABN AMRO Bank - why the stock might be worth 47% less than the current price!

Build Your Own ABN AMRO Bank Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ABN AMRO Bank research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free ABN AMRO Bank research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ABN AMRO Bank's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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