Feb 14 (Reuters) - Dutch lender ABN Amro's fourth-quarter profit beat expectations on Wednesday, boosted by high interest rates and releases of credit impairments, sending its shares more than 5% higher.

ABN Amro, one of three dominant banks in the Netherlands, posted a 54% year-on-year rise in fourth-quarter net profit to 545 million euros ($584 million). That beat market expectations of 422 million euros in a poll compiled by the company.

The banking sector has been one of the main beneficiaries of rising interest rates over the last two years. However, the horizon is clouded by economic uncertainty and expectations of possible rate cuts later this year.

The European Central Bank kept

rates unchanged

at the end of January, and said it was premature to discuss cuts.

ABN Amro's net interest income, a key measure of earnings on loans minus deposit costs, fell to 1.50 billion euros in the quarter, from 1.56 billion a year earlier.

Analysts had expected net interest income of 1.49 billion euros.

The company said it expected 2024 net interest income to be broadly in line with the 6.3 billion euros reported for last year.

ABN Amro's CET1 ratio -- a measure of capital strength for European banks that compares their core capital against risk-weighted assets -- fell 0.9 percentage points from a year earlier to 14.3% as of Dec. 31. Analysts were expecting a ratio of 14.7%.

The lender said costs in the final quarter of 2023 were higher due to "increased resources for data capabilities, further digitalisation of processes and sustainable finance regulation".

It expects those costs to remain elevated through 2024. ($1 = 0.9336 euros) (Reporting by Gaëlle Sheehan and Nathan Vifflin in Gdansk; editing by Milla Nissi and Keith Weir)