UBS has increased its price target for ABN AMRO to €38.50 from €37.30 while keeping a Buy recommendation ahead of the Dutch bank's first-quarter results on May 13, according to analyst Johan Ekblom.

Ekblom forecasts underlying pre-tax profit of €806 million, excluding €60 million in reorganization costs. This would mark a 25% rise from the previous quarter, though a 4% decline year-over-year. The analyst attributes the annual drop entirely to a normalization in credit losses.

Revenues should climb 5.6% year-over-year, Ekblom predicts. Key drivers include elevated replication results from trading activities, higher fees partly linked to HAL and clearing services, plus a return to normal levels in other income categories.

Cost management remains a priority, with ongoing staff reductions expected to support profitability.

At €30.27 on Thursday—a 0.3% decline—ABN AMRO's shares trade above the broader analyst consensus target of €28, where the rating stands at Outperform. UBS's higher target implies over 27% upside potential from current levels, signaling greater optimism on the bank's trajectory.

ABN AMRO operates in a competitive banking landscape, focusing on retail, commercial, and private banking in the Netherlands and internationally. Recent efforts to streamline operations position it for potential earnings beats, according to IEX reporting via ABM FN-Dow Jones.