WASHINGTON (dpa-AFX) - Dutch lender ABN AMRO Holding N.V. (ABN.AS, ABMRF, AAVMY) Tuesday unveiled its new financial targets for 2026-2028, and new strategy for profitable growth, including job cuts, at its Capital Markets Day.
Separately, the firm announced its agreement to sell personal loan business unit Alfam to Rabobank. The financial terms of the deal were not disclosed.
For the coming years, ABN AMRO's three strategic priorities include accelerating profitable growth, and right-sizing the bank's cost base, including a net reduction of the workforce by 5,200 FTEs by 2028 compared to 2024. The company will also deploy capital where it generates the highest returns.
By 2028, the company projects income of over 10 billion euros, Return on equity or ROE of at least 12% and CET1 ratio above 13.75%.
As part of its new strategy, the firm plans to strengthen its Dutch retail position. The company is simplifying its organisational structure to become more efficient and effective, and in the proposed workforce reduction, around half will take place through attrition.
In the deal with Rabobank, ABN AMRO's Alfam, which mainly operates under the brand name Defam, will join forces with Rabobank's own consumer credit provider Freo in the consumer credit market, and will continue together as a single provider. The company noted that the Freo and Defam brands will remain.
The transaction is expected to be completed in the third quarter of 2026, subject to approval by the relevant regulators.
ABN AMRO expects the sale to have a positive impact on its CET1 capital ratio of around 5 basis points. This includes around 1.2 billion euros in RWA reduction and an anticipated book loss of around 100 million euros.
Following the deal, ABN AMRO will continue to offer personal loans to its clients, through a third-party arrangement with Rabobank. The company noted that customers can apply for loans through ABN AMRO, Rabobank, and intermediaries, and directly online.
Rabobank intends to appoint Ron van Vliet, CEO of Freo, as CEO of the new combined entity as of the integration date, subject to approval by the AFM.
Annerie Vreugdenhil, Chief Commercial Officer Personal & Business Banking at ABN AMRO, said, 'In the changing landscape of consumer credit, we are pleased that in the future we can offer personal loans together with Rabobank. Rabobank is a trusted name and a partner whose values and standards closely align with ours. . We are confident that the new combination of Alfam and Freo, under Rabobank's leadership, will continue to offer this type of credit with great care for the interests of customers.'
Carlo van Kemenade, Managing Board Member Retail Netherlands at Rabobank, added that the deal aligns with its ambition to strengthen its position in the Dutch retail market.
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