AMSTERDAM Dutch bank ABN Amro said on Wednesday its investment bank will end all trade and commodity financing operations, as the unit’s focus turns solely to Northwest Europe and clearing activities to reduce risks.
The move will end ABN’s presence in the United States, Asia, Australia and Brazil, except for clearing, and relates to around 45% of the corporate bank’s client loans, worth 18 billion euros ($21 billion).
Around 800 employees are expected to lose their jobs as the operations are wound down in the next three to four years, the bank said.
The move follows several earlier attempts to increase profitability and reduce risks at ABN’s corporate bank, as ongoing difficulties in the offshore energy markets saddled it with large impairments.
“We will serve clients in segments where we can achieve scale, so we will focus on the Netherlands and Northwest Europe, where we will invest and grow,” Chief Executive Robert Swaak said.
Several other European banks have been rethinking their trade and commodity finance operations in recent months, including Natixis and BNP Paribas, hit by losses in energy trading and a drive to focus more on greener finance initiatives.
High write-offs due to the low oil price and the COVID-19 crisis led to a net loss of 5 million euros in the second quarter, ABN said.
This beat analysts’ expectations for a loss of 46 million euros, after a 693 million euro profit in the same period a year ago.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor
Comments
0 comment