Dutch bank ABN Amro plans to eliminate 5,200 positions by 2028

ABN AMRO Plans Job Cuts and Strategic Changes

ABN AMRO has announced its intention to eliminate 5,200 full-time positions by 2028 as part of a broader effort to reduce costs and streamline operations. This move represents a significant reduction—over one-fifth—of the bank’s total workforce, impacting various departments including recently acquired entities like Hauck Aufhauser Lamp and NIBC Bank.

Chief Executive Marguerite Bérard communicated to reporters that these layoffs are essential for repositioning the bank towards its core business areas.

Interestingly, following this announcement, ABN AMRO’s stock saw a more than 4% increase on the day prior to the market opening.

In addition to job cuts, the bank has sold its personal loan division, Alpham, to domestic competitor Rabobank. There are also plans to decrease risk-weighted assets in the corporate banking sector by approximately 10 billion euros over the next three years.

Although the Alpham sale is expected to incur a book loss of about 100 million euros, it should positively affect the bank’s common equity Tier 1 (CET1) ratio by 5 basis points, enhancing its capital strength.

Looking ahead, ABN AMRO aims for a return on equity (ROE) of at least 12% and is set to distribute up to 100% of its capital generated from 2026 to 2028 to its shareholders. They are also targeting profits exceeding 10 billion euros and a CET1 ratio above 13.75%.

With a market valuation around 16 billion euros, ABN AMRO has been one of the noteworthy beneficiaries in the upswing of European banking stocks over the last couple of years. This trend has mostly been fueled by rising interest rates and robust profit margins, with financial institutions in the euro area building significant capital in anticipation of sector consolidation.

There has been speculation about ABN AMRO being a potential takeover target, especially since the Dutch government is in the process of divesting its stake after the bank’s nationalization during the 2008 financial crisis. However, Bérard, who took over as CEO in early 2025, has reassured that the bank is focusing on its independent growth: “We are building the future of ABN AMRO on our own,” she stated.