ABN NA

ABN AMRO Bank N.V. - NLDR

Finance/Real Estate


Presented:05/20/2021
Price:€10.68
Cap:$11.18B
Current Price:€15.53
Cap:$14.41B

Presented

Date05/20/2021
Price€10.68
Market Cap$11.18B
Ent Value$86.87B
P/E Ratio36.64x
Book Value€20.40
Div Yield0%
Shares O/S940.00M
Ave Daily Vol3,977,637
Short IntN/A

Current

Price€15.53
Market Cap$14.41B
ABN AMRO Bank NV engages in the provision of banking services. It operates through the following segments: Retail Banking; Commercial Banking; Private Banking; Corporate and Institutional Banking; and Group Functions. The Retail Banking segment provides transparent banking products services under the ABN AMRO brand. The Commercial Banking segment offers products and services based on in-depth client and sector knowledge combined with innovation and digitalisation in the United Kingdom, Germany, France, Belgium, and the Netherlands. The Private Banking segment gives risk-controlled manner advice on wealth management in the Netherlands, France, Germany, and Belgium. The Corporate and Institutional Banking segment involves in a range of services and products in global markets and lending. It specializes in clearing and trade, and commodity finance activities. The Group Functions segment consists of various departments that provide essential support and control to the business segments. The company was founded in 1973 and is headquartered in Amsterdam, the Netherlands.

Publicly traded companies mentioned herein: ABN AMRO NV (ABN NA) 

Highlights

The presenter is long shares of ABN AMRO Bank NV (ABN NA), a Netherlands-based bank that is trading at ~€10.50 per share (~€10B market cap). Like the presenter of Lloyd’s Banking Group PLC (LLOY LN) – Long, he is bullish on the UK banks, and notes that if UK bank recoveries are 6 – 9 months behind US banks, ABN is likely another ~6 months behind UK banks. Still, he considers the valuation compelling; US and European banks are typically trading at ~1.5x and ~0.85x BV, respectively, while ABN is trading at 0.5x BV due to a series of self-inflicted headwinds from the two previous years. He considers this cheap given its strong excess capital position (~50% of market cap), new CEO Robert Swaak’s restructuring moves, and continued vaccination efforts that should reduce economic uncertainty in the coming months. Based on these dynamics, he sees potential for the stock to double over the next two years. 

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Idea Discussion

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