* Q1 net interest income down 11%, missing expectations
* Net loss of 54 mln euros in line with outlook
* Loss driven by 480 mln euros money laundering fine
* Shares fall 7.5%
AMSTERDAM, May 12 (Reuters) - ABN Amro shares fell
more than 7% in early trading on Wednesday, after the Dutch
lender reported a worse-than-expected slide in its interest
income over the first three months of 2021 and booked a 480
million euro ($582.34 million) fine for money laundering.
Net interest income dropped 11% from a year before to 1.36
billion euros as low rates depressed the deposit margin, while
the corporate loan book shrank following last year's decision to
end trade and commodity financing.
Interest income fell 9% over the whole of 2020.
"Net interest income trends remain challenging," Citigroup
analysts wrote in a note.
ABN Amro shares traded down 7.5% at 10.16 euros at 0850 GMT.
They were still up 70% from a year ago, however, following a
strong recovery in the last three months.
ABN reported a net loss of 54 million euros over the first
quarter, as a money-laundering fine outweighed the positive
impact of economic recovery in the Netherlands.
ABN Amro last month agreed to pay 480 million euros to Dutch
prosecutors to settle a criminal investigation into its lax
oversight of money laundering through its accounts.
The investigation also increased ABN's expenses, as it took
on extra staff to strengthen its anti-money laundering
The largely state-owned bank last year almost doubled the
number of staff dedicated to spotting suspicious transactions to
nearly 4,000, increasing employment at the bank for the first
time after years of cuts.
Despite the fall in interest income and rising costs,
operational performance was in line with previous quarters,
Chief Executive Robert Swaak said.
He said the Dutch economy was weathering the COVID-19 crisis
relatively well and he expected "a strong economic rebound later
this year as lockdown restrictions ease".
The lender improved its market share of new mortgages as the
Dutch housing market booms, while economic recovery meant it
could release 77 million euros from its provisions for bad
The first-quarter net loss was roughly in line with
analysts' average expectations in a company-compiled poll. The
lender had reported a loss of 395 million euros a year ago at
the height of the pandemic.
($1 = 0.8237 euros)
(Reporting by Bart Meijer; Editing by Sherry Jacob-Phillips,
Simon Cameron-Moore and Barbara Lewis)