ABN Amro is cutting 1,500 jobs in new cost-saving plans - despite reporting a rise in profits

Caitlin Morrison
Follow Caitlin
(FILES) An ABN Amro building is pictured
The Dutch government is a majority shareholder in ABN Amro (Source: Getty)

Dutch lender ABN Amro has announced plans to cut 1,500 jobs as part of new cost-saving plans, despite reporting a hike in profit during the third quarter of 2016.

The bank, which has offices in London, Birmingham, Cardiff, Haywards Heath, Leeds and Manchester, posted a 19 per cent year-on-year increase in underlying net profit for the three months to 30 September - up to €607m (£523m) from €509m this time last year.

Interest income "remained robust", according to ABN Amro, which was famously bailed out by the Dutch state during the financial crisis, with costs contained and loan impairments staying low.

However, the group also revealed its plans to save €400m, which it said will affect around 1,500 full-time employees. A spokesperson for the bank said it could not yet confirm where those jobs will be lost.

Chairman Gerrit Zalm - who was last year forced to apologise over proposed executive pay hikes which sank the firm's IPO plans - said the company had "updated and extended" its strategy and financial targets looking ahead to 2020.

"We concluded that the strategic foundations of being client-driven, having a moderate risk profile, investing in the future and our people, and pursuing sustainable growth remain firm," he said.

"Our services are well recognised by our clients; for instance, our Mobile Banking app came in 6th place globally in an industry survey. 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."

Zalm added: "I am confident that our plans will enable us to deliver lasting value to our clients, now and in the future."

The Dutch government recently rejected a takeover offer from Swedish bank Nordea on ABN's behalf.

Related articles