AMSTERDAM, Reuters – ABN Amro, a Dutch bank, announced Wednesday that it would buy 500m euros (571 million dollars) of its shares. The bank reported a higher than expected net profit of 552m euros in the fourth quarter. This was due to economic recovery and the disposal of its head office.

Robert Swaak, chief executive of ABN Amro said that ABN Amro plans to make attractive returns for shareholders. This buyback marks an important milestone.

ABN Amro is largely owned by the state and said at the end December that the core capital adequacy ratio was 16.3%. That includes the impact of the sharebuyback, due to conclude in June.

ABN Amro’s Dutch clients saw a significant improvement in their financial condition in the past 12 months, with COVID-19 Lockdown measures being eased. Interest income was lower than predicted.

In the fourth quarter of last year, net interest income fell 1% compared to the previous year. This brings the total drop in interest income for the year down to 11%.

A 245 Million Euro net profit from the leaseback and sale of ABN’s Head Quarters in South Amsterdam was also a significant contributor to the 2021 Profit.

An average net profit forecast by analysts was 451 million euros, up from 53 million in the year prior.

ABN Amro was privatized in 2015. However, the Dutch government still holds 56% of its shares. It has not sold any since September 2017.

($1=0.8755 euros)