(Reuters) -Dutch bank ABN Amro on Wednesday said that it had acquired domestic commercial lender NIBC Bank from private equity firm Blackstone, strengthening its position in its home market.
The acquisition, for an estimated price of 960 million euros ($1.1 billion), is set to close in the second half of next year. It is expected to improve ABN Amro’s profitability and generate a return on invested capital of roughly 18%, the bank said.
ABN Amro also beat market expectations for third-quarter profit. Net profit fell by 11% from a year ago to 617 million euros ($720 million), ahead of analysts’ median forecast of 589 million.
“In relation to the acquisition of NIBC, we have reassessed our mortgage brand strategy (and) decided to focus on our core mortgage labels, ABN AMRO and Florius, and to discontinue the Moneyou brand” CEO Marguerite Bérard said in a statement, as the lender aims to improve efficiency.
ABN Amro’s costs were higher than anticipated in the quarter, in part due to the integration of staff from German bank Hauck Aufhäuser Lampe which it acquired at the beginning of the year.
The bank is now targeting 5.4-5.5 billion euros of expenses in 2025, compared with market forecast of 5.56 billion.
($1 = 0.8575 euros)
(Reporting by Mateusz Rabiega; Editing by Matt Scuffham)
