RBC: ABN Amro's Q3 2026 Messaging Sets Base for FY29 Targets; Price Target Up

04:33 AM EST, 11/12/2026 (MT Newswires) -- RBC Capital Markets raised its price target for ABN Amro Bank (ABN.AS) to 50 euros from 45 euros, with an outperform rating, saying the Dutch lender's third-quarter 2026 messaging lays the groundwork for its full-year 2029 targets. "Consistent delivery leads to increased predictability which provides more confidence on the future earnings path. We suspect part of the Q3 messaging also intended to set the right base for the update with Q4 results on 2029 targets. We continue to see room for the shares to re-rate by 0.2x TBV if earnings volatility further comes down. Our estimated ROTE improvement is largely based on self help - cost control and capital distributions (9% yield 2027E). We model close to a 100% payout ratio for 2026 and going slightly above the years after," analysts said Thursday. The research firm noted that ABN's liability margin rose 8 basis points in the third quarter to 127 points, prompting management to upgrade its 2026 commercial net interest income outlook to over 6.9 billion euros from the previous 6.8 billion-euro outlook, which includes NIBC. "ABN provided some more detail on its 2028 NII outlook as the EUR7.2bn commercial NII guidance provided at the CMD was outdated. ABN guided to a EUR350m uplift in 2028 vs Q3 '26 NII (+13bp liability margin; 2027 +8bp, 250m) from no pass-through of higher rates on its EUR50bn current account base (but based on higher end of September rates)," the note said. RBC also revised its earnings forecasts, including upgrades to adjusted diluted EPS for 2026 through 2028.