ABN Amro Dutch bank lost €395m in Q1 2020, after being forced to make €1.1bn in provisions to protect against potential non-performing loans. It warned at the same time that it could set aside €2.5bn in provisions before the end of the year. The provisions were made necessary because of two clients with loans totaling more than €500m.
Among the hazardous exposures it faces are a large volume of loans to companies in the oil and gas industries, which are in trouble as a result of the collapse in fuel prices worldwide. The bank also set aside €140m in standard reserves which aren’t related to fallout from the coronavirus crisis.
