ABN is a Dutch bank with Retail banking, Wealth management and Corporate banking services in North-West Europe. Income comes mostly from NII, of which 90% in the Netherlands.

A forward looking annual net profit of >€2B in 2024 gives a valuation of 6x PE at €12B market cap. 2024 results will depend on cost control and the interest rate climate.

ABN is a buy with a 10% annual dividend yield (50% payout) plus €500M share buyback in 2024. And the low 0.6 PB ratio makes it an attractive investment.

A profitable bank that has high dividend, and share buy backs. The main drag on valuation is that most banks have low P/E due to market fear of macro. ABN has 50% dividend policy ~10% dividend, and since CET1 ratio is already above target I expect additional share buy backs. RoE target is 10%, which is lower than current level. 2023Q4 indicates that this is a good reference for 2024, i.e. EPS24=0.6*4=2.4, which would give PE24=6,7 which is good and will generate good return on capital without much risk in my opinion. I don't expect much increase in the share price since the Dutch state wants to sell off its large stake. Taking in to account the drop for sv. Handelsbanken on a soft report and ABN potentially has higher costs in 2024Q1 than 2023Q4, not sure about what rating to give, analysts are quite negative.