Dutch bank ABN AMRO to slash 5,200 jobs
What's the story
Amsterdam-headquartered ABN AMRO has announced plans to cut 5,200 full-time jobs by 2028. The move comes as part of the bank's strategy to focus on its mortgage business and meet cost-cutting targets. The announcement was made just ahead of the bank's capital markets day event. The lender also announced that it would be selling its personal loan business Alfam to domestic peer Rabobank.
Financial goals
ABN AMRO's strategic financial targets and asset reduction
As part of its 2028 roadmap, ABN AMRO aims for a return on equity of at least 12% and plans to distribute up to 100% of capital generated between 2026 and 2028. The bank also targets an income exceeding €10 billion and a Common Equity Tier 1 (CET1) ratio above 13.75%. The sale of its personal loan business is expected to positively impact the bank's CET1 ratio by five basis points despite an anticipated book loss of around €100 million.
Leadership vision
ABN AMRO's CEO outlines focus on sustainable growth
ABN AMRO's CEO Marguerite Berard has emphasized a focus on sustainable and profitable growth in Northwest Europe. This was her first investor event since taking over in early 2025. Berard has made cost-cutting and focusing on core businesses her top priorities as part of the bank's restructuring process.
Restructuring efforts
ABN AMRO's job cuts and acquisitions under Berard's leadership
Under Berard's leadership, ABN AMRO plans to cut 5,200 full-time roles by 2028. Half of these reductions will be through attrition. The bank also recently completed the acquisition of German wealth manager Hauck Aufhauser Lampe AG and announced a €960 million ($1.1 billion) deal to acquire NIBC Bank from Blackstone Inc., which is expected to yield an 18% return by 2029 on capital invested.
Market performance
ABN AMRO's shares surge and operational simplification
ABN AMRO's shares have surged nearly 80% this year. The bank is simplifying its operations by cutting legal entities, digitalizing processes, retiring legacy systems, and leveraging artificial intelligence. These measures are part of Berard's broader strategy to enhance profitability at the Amsterdam-headquartered lender.