Abn Amro flies to Amsterdam, sells Alfam and will cut 5,200 posts by 2028
The bank released its new plan, which aims to simplify the organisational structure. The group is aiming for a Roe of at least 12%, a cost/income ratio below 55% and revenues in excess of EUR 10 billion
(Il Sole 24 Ore Radiocor) - Abn Amro in the forefront on the Amsterdam Stock Exchange, after announcingthe plan to 2028 that includes cutting 5,200 jobs and the sale of Alfam, the personal loans subsidiary. The Dutch banking group's share price gained more than 6 per cent and has gained almost 90 per cent since the beginning of the year. On Capital Markets Day, Abn Amro presented its 'roadmap for profitable growth and new financial targets for 2028'. The bank indicated that it is 'simplifying its organisational structure to become more efficient and effective. As a result, the workforce will decrease by 5,200 net full-time positions by 2028 compared to 2024'. Approximately half of the reduction will take place due to staff 'turnover' and by 2025, a reduction of more than 1,000 positions has been achieved, a release specifies.
The cut concerns more than one-fifth of the bank's workforce and will affect all divisions, CEO Marguerite Bérard explained. "Operations are being streamlined, promoting efficiency by reducing the number of legal entities, optimising and digitising end-to-end processes. Technology is key, with the phasing out of legacy systems, the expansion of the use of APIs (Application Programming Interfaces, i.e. the protocols that allow different software and applications to communicate, exchange data and integrate with each other, ed.) and the integration of artificial intelligence,' the bank details. As part of the plan to 2028,the group aims for a Roe of at least 12%, expects to distribute up to 100% of generated capital to its shareholders between 2026 and 2028, a cost/income below 55%, revenues above EUR 10 billion and a CET1 ratio above 13.75%. The group also aims to reduce risk-weighted assets in the Corporate Banking division by EUR 10 billion over the next three years.
Abn Amro Bank also announced that it has reached an aagreement to sell its Alfam personal loans subsidiary to Rabobank. The transaction is part of its strategy to simplify its organisation and improve its operational performance, the bank explained. The transaction is expected to be finalised in the third quarter of 2026. In the group's estimates,the sale will have a positive impact of 5 basis points on Cet1, although it will result in anaccounting loss of about EUR 100m. Abn Amro will continue to offer personal loans to its customers through a partnership with Rabobank. "At the core of our strategy are five long-term strategic ambitions. We aim to strengthen our position in Dutch retail banking by offering a 'premium' customer experience. We will become one of the top five private banks in Europe. Supporting family wealth and businesses remains a key priority, as they are the backbone of the economy. Furthermore, we will stimulate growth by supporting major European transitions in areas such as digitisation, energy, mobility and defence. Finally, we are committed to maintaining our position among the top three worldwide in clearing,' said CEO Berard in a note, adding that she understands that 'changes to our cost base, particularly the reduction of jobs, mean uncertainty for our colleagues. We are committed to supporting all those affected with a solid social plan, offering financial support and assistance in finding new opportunities'.
