ABN Amro to cut another 1,500 jobs
On the fringe of the publication of its Q3 2016 results, Dutch financial group ABN Amro has announced another 1,500 jobs will be affected by a new cost savings plan of €0.4bn.
Meanwhile, ABN Amro reported €607m net profit for the third quarter of 2016, up 19% year-on-year and its CET1 ratio has increased to 16.6%.
Gerrit Zalm, chairman of the managing board of ABN AMRO Group, said that strategic priorities and financial targets towards 2020 have been updated.
“We now want to take another step forward in delivering in-depth expertise in a digitally savvy way to our clients and will increase our expenditure on initiatives for growth, innovation and digitalisation by €0.4bn by 2020 compared with 2015. To finance these initiatives and offset cost inflation and levies of approximately €0.5bn, we target cost savings of a similar amount (€0.9bn) by 2020,” he commented.
Zalm added the cost/income target has moved from the 56-60% range by 2017 to 56-58% range by 2020.
“As the impact of Basel IV is still unclear, we have decided to leave the targets for the CET1 ratio (11.5-13.5%), ROE (10-13%) and the dividend payout ratio (50% over 2017) unchanged for now. I am confident that our plans will enable us to deliver lasting value to our clients, now and in the future,” he said.