Dutch Bank ABN Amro to Cut 5,200 Jobs by 2028
ABN Amro has announced a significant restructuring plan, revealing its intent to cut 5,200 full-time jobs by 2028. This decision comes as the Dutch bank aims to adhere to cost-cutting commitments and refocus its efforts on the mortgage business.
Key highlights include:
– Job Reductions: 5,200 full-time positions will be eliminated by 2028.
– Strategic Shift: The bank plans to divest its personal loan business, Alfam, to Rabobank.
– Financial Management: ABN Amro intends to reduce risk-weighted assets in its corporate banking division by €10 billion (approximately $11.5 billion).
– Capital Strength: Despite facing an anticipated book loss of around €100 million, the restructuring is projected to improve the bank’s Common Equity Tier 1 (CET1) ratio by 5 basis points.
– Future Goals: By 2028, ABN Amro aims to achieve:
– A return on equity of at least 12%.
– Distribute up to 100% of generated capital to shareholders from 2026 to 2028.
– Annual income exceeding €10 billion and a CET1 ratio above 13.75%.
CEO Marguerite Berard emphasized the bank’s commitment to sustainable and profitable growth in Northwest Europe. This investor event marks her first presentation since her appointment in early 2025, where she outlined a strategic focus on cost management and core business operations.
As ABN Amro embarks on this transformation, the implications for its workforce and financial trajectory will be closely monitored by stakeholders and investors alike.