ABN Amro’s new CEO seeks to slash 5,200 jobs in major revamp

ABN Amro Bank NV plans to cut 5,200 full-time roles as the new Chief Executive Officer, Marguerite Berard, seeks to boost profitability.

The net reduction compared to last year’s headcount is anticipated to be completed over the next three years, and half of it will take place through attrition, the Dutch lender said in a statement on Tuesday. ABN Amro had almost 22,000 full-time internal staff at the end of 2024 and 3,670 external contractors.

“We know that more must be done to enhance our returns and competitiveness,” Berard said in the statement.

Berard, who succeeded Robert Swaak in April to become the bank’s first female chief, has vowed to cut costs and optimise capital allocation to boost profitability. She’s already kicked off the restructuring at the Amsterdam-headquartered lender, resulting in a reduction of about 1,000 full-time roles this year, and earlier this month announced the biggest acquisition by ABN Amro since it was re-listed on the stock exchange a decade ago.

The Dutch bank will seek to boost return on equity to at least 12% in 2028 while targeting a cost-to-income ratio below 55%, according to the statement ahead of its capital markets day on Tuesday.

The previously announced €960 million ($1.1 billion) deal to acquire NIBC Bank from Blackstone Inc., which will increase ABN Amro’s scale in the Netherlands, is projected to deliver a return of about 18% by 2029 on the capital that ABN Amro is investing. The bank also recently completed the acquisition of German wealth manager Hauck Aufhäuser Lampe AG.

ABN Amro’s shares have risen about 80% so far this year.

The lender’s operations are being simplified by reducing the number of legal entities, digitalising processes, phasing out legacy systems and using artificial intelligence, according to the statement.

ABN Amro also set a target of boosting revenue to more than €10 billion by 2028. Its new goals include strengthening its position in Dutch retail banking and becoming a “top-five private bank” in Europe.

On Tuesday, it said it had reached an agreement to sell its Alfam subsidiary, a personal loan business, to Rabobank.

Berard, a former BNP Paribas SA executive, is steering the lender as the Dutch state continues to reduce its stake. The government seeks to cut its holding in ABN Amro to about 20%, from 30.5% previously, it said in September.

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