Trade the ABN Amro share!
ABN AMRO

Analysis of ABN Amro share price

Trade the ABN Amro share!
BUY   SELL
77% of retail CFD accounts lose money - Plus500.com
 
Chart provided by Tradingview

We propose to you to discover, through an article entirely devoted to the share ABN Amro how to analyze this value in stock exchange in the best possible way. For that, we will indeed propose to you to find stock exchange information and economic data about this company so as to enable you to carry out coherent analyses of its price? You will find information on the activities of this company, on its sources of income, its main competitors on the market or its recent partnerships as well as the data to be watched within the framework of its fundamental analysis.

Elements that can influence the price of this asset:

Analysis N°1

First of all, we will keep an eye on this bank's geographical expansion capabilities with strategies to develop in other as yet untapped markets.

Analysis N°2

Economic policies and their increasingly austere evolution around the world will also be important in this analysis.

Analysis N°3

We will of course keep a close eye on the competition in this sector with the latest news and the results of the other major groups present on the same markets.

Analysis N°4

Government regulations and the country's financial situation may also have an impact on the company's results.

Analysis N°5

Finally, we will closely monitor the evolution of the group's assets and outstandings, which are two major data to be taken into consideration in the banking sector.

77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500

General presentation of ABN Amro

Now, we would like to give you some more information about ABN AMRO, including details of its activities and, above all, the breakdown of its income into the various segments. This will allow you to learn a little more about this group and how it may perform in the market in the years to come.

The ABN AMRO Group is a Dutch company in the banking sector. More specifically, it is currently one of the leading banking groups in the country.

To better understand the activities carried out by this bank, it is possible to divide them into different segments according to the share of net banking income or NBI that they generate and in this way:

  • Firstly, retail banking activities alone account for almost 44.9% of the bank's net banking income, with the sale of traditional and specialised banking products and services through a network of 129 branches worldwide.
  • This is followed by investment banking activities, which generate almost 10.3% of NBI. The group is also the leader in this segment in its country.
  • The remaining 2.3% of the GNP comes from other products and services.

Currently, the group manages more than 235 billion euros in deposits and 268.1 billion euros in loans.

It is also interesting to know the geographical distribution of this group's activities. The group generates 86.7% of its GNP in the Netherlands, 7.3% in the rest of Europe, 3% in the USA, 2.2% in Asia and 0.8% in the rest of the world.

Analysis of ABN Amro share price
77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500

The major competitors of ABN Amro

Now that you have a good understanding of ABN AMRO and its activities, we would like to find out who the main competitors are in the market, i.e. who the largest banking groups are in the Netherlands today.

ING 

ING Group is an international bancassurance financial institution based in the Netherlands. It was formed in 1991 through the merger of the insurance company Nationale Nederlanden and the network bank NMB Postbank.

Rabobank

This other bancassurance financial institution is also based in the Netherlands and has existed since 1972 following the merger of the Cooperatieve Centrale Raiffeisen Bank and the Cooperatieve Centrale Boerenleenbank. It is a cooperative structure but also the largest agricultural credit group in the world. The group is also the number one retail banking group in the Netherlands thanks to its geographical base and its core business, retail banking.

BNG

Bank Nederlandse Gemeenten is a Dutch-based finance bank but also a public bank. It does not really work with private individuals and companies but with public or semi-public entities. It has existed since 1914.

NWB Bank

Nederlands Waterschapsbank is a Dutch public finance bank that specialises in public infrastructure financing, including water infrastructure financing. Again, it does not work directly with private individuals and companies but with public or para-public entities. It was established in 1954 following the North Sea flood of 1953.


The major partners of ABN Amro

We would like to take a look at two concrete examples of partnerships established by the ABN AMRO Group in recent years that will help you learn more about possible strategic alliances for this company.

Fred Alger Management

ABN AMRO Group's open-architecture investment solutions platform, ABN AMRO Investment Solutions has launched a strategic partnership with US-based investment management firm Fred Alger Management in 2019. ABN AMRO thus selected this company due to its status as an independent management company, its well-structured organisation with an investment philosophy, investment process and analyst team, but also for its proprietary research tool producing highly differentiated views.

The World Bank

Earlier in 2001, ABN AMRO launched a green bond in partnership with the World Bank. This bond, called World Bank Eco-3, and its marketing have allowed to obtain capital to finance sustainable development projects and to fight against poverty. The two companies have started a partnership in the Netherlands by marketing this bond to the retail market. The funds that were raised through this bond have thus made it possible to intensify the fight against poverty and to finance sustainable development projects.

77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500
Positive factors for ABN Amro shares
The factors in favour of a rise in the ABN Amro share price:

Another way of finding out how ABN AMRO stock is likely to perform is to determine what its advantages and disadvantages are. This means listing the main strengths and weaknesses of this company in order to compare them. Here are the current strengths and weaknesses of this stock and banking group.

The main strengths of the ABN AMRO Group are as follows

  • First of all, we appreciate the integrated approach to wealth management and banking that gives this group a major strategic advantage over the competition.
  • The group's focus on sustainability with an emphasis on the environment is another of its strengths, and one that enhances the company's brand image in the eyes of the general public.
  • The group currently has a large international network, which allows it to gradually expand its activities abroad and no longer depend solely on the Dutch economy.
  • Customer satisfaction is at the heart of the ABN AMRO Group's marketing strategy and this strategy is paying off as the Group enjoys an excellent reputation.
  • The size of the company is also one of its greatest assets, as the group currently employs more than 110,000 people worldwide and operates in nearly 63 countries.
  • Lastly, the advantages of this bank include the diversity of its service offerings with asset management, commercial banking, investment banking, private banking and retail banking.
Negative factors for ABN Amro shares
The factors in favour of a drop in the ABN Amro share price:
  • First of all, it is regrettable that ABN AMRO's advertising and communication is less extensive than that of other major competing banks.
  • Another shortcoming of this bank is that it has very little presence in emerging economies.
  • Finally, the bank is still suffering from a legal problem it encountered with Goldman Sachs that is damaging its image.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

When was the takeover of ABN AMRO Bank completed?

On 10 October 2007, the group was acquired by Fortis, Royal Bank of Scotland and Banco Santander Central Hispano, following a hostile takeover bid. RBS acquired the financial assets of this bank as well as its US operations, except for LaSalle Bank, which was sold to Bank of America. Fortis acquired its banking network in Belgium and Santander, the subsidiary Banco Real in Brazil.

How is the ABN AMRO Group positioned in its sector internationally?

Internationally, the ABN AMRO Group has strong positions in the central US as a retail bank and in Brazil. In terms of transaction volume, the Dutch banking group is currently the 11th largest banking group in Europe and the 20th largest in the global market. It has over 3,000 offices worldwide.

What financial data should I look at for ABN AMRO shares?

Among the financial data that you must absolutely take into consideration when analysing this ABN AMRO stock, and given the very specific sector of activity of this company, we will retain the NBI or Net Banking Income as the main indicator as well as the volume of outstanding deposits and the volume of outstanding loans.

77% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500