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ABN Amro's Q3 results to include provisions related to CIB restructuring

Dutch financial group ABN Amro Group NV said its third-quarter results will include a €27 million restructuring provision and a €12 million gain from the sale of ABN Amro Bank (Luxembourg) SA to BNP Paribas SA.

The provision is related to the bank's plan to restructure its corporate and investment banking division, the lender said Oct. 15, adding that it expects to book additional provisions at a later date.

Apart from these incidental items, the group will also change the allocation of net interest income between group functions and business segments from the third quarter, following an improvement in its model for nonmaturing deposits. As a result, hedging costs within group functions are expected to rise by around €40 million annually.

As a result, asset and liability management, which is a part of group functions, will pay a lower transfer price on nonmaturing deposits to the business divisions, increasing the net interest income for group functions by around €40 million.

Additionally, the asset and liability management's net interest income will be split among different business divisions.

The measures are expected to reduce the net interest income of retail banking, private banking and commercial banking by around €30 million, €10 million and €20 million, respectively, and increase the net interest income for CIB by around €20 million and for group functions by roughly €40 million. Future impact will be based on market interest rate movements and changes in clients' rates, the group added.

ABN Amro Group will publish its third-quarter results Nov. 7.