ABN Amro to Cut 1,500 More Jobs; Net Profit Up -- Update
16 Novembre 2016 - 10:33AM
Dow Jones News
By Maarten van Tartwijk
AMSTERDAM--Dutch bank ABN Amro Group NV said Wednesday it will
shed another 1,500 jobs in the coming years as it accelerates
restructuring efforts to reduce costs and invest in digital
services.
ABN Amro said the cuts, which will result in EUR400 million
($428.9 million) extra savings, come on top of existing
restructuring plans that will result in around 1,000 job losses.
The measures will reduce the bank's workforce by around 13% and
generate a total of EUR900 million in savings by 2020, which ABN
Amro said are needed to offset higher regulatory costs and
investments in digital services.
The announcement came as ABN Amro said it reported a solid
performance for the third quarter, with net profit rising 19% to
EUR607 million, reflecting lower loan-loss provisions and higher
net interest income. Outgoing Chief Executive Gerrit Zalm, who led
the bank after its nationalization in 2008 and oversaw its return
to the market, said the continued restructuring efforts should make
the bank "more digital and agile."
ABN Amro isn't the only Dutch bank downsizing. Local rival ING
Groep NV said last month it would slash 7.000 jobs in the next few
years to improve both efficiency and its digital offerings.
Meanwhile, Rabobank Group is in the midst of shedding 9,000
staff.
The cutbacks highlight how banks' business models are being
disrupted by more stringent capital requirements, record low
interest rates and a shift to online banking. The Dutch central
bank said in a recent study banks need to improve efficiency to
protect profitability but the double-digit returns seen before the
global financial crisis are no longer obvious."
Shares in ABN Amro fell 1.7% after the announcement, having
gained around 20% since last year's initial public offering.
Write to Maarten van Tartwijk at Maarten.vanTartwijk@wsj.com
(END) Dow Jones Newswires
November 16, 2016 04:18 ET (09:18 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
ING Groep NV (EU:INGA)
Graphique Historique de l'Action
De Fév 2024 à Mar 2024
ING Groep NV (EU:INGA)
Graphique Historique de l'Action
De Mar 2023 à Mar 2024