Dutch bank ABN AMRO takes bold steps: cuts 5,200 jobs and divests consumer loan business.

The Dutch large bank ABN AMRO announced an ambitious reform plan on Tuesday. By 2028, the bank aims to achieve a revenue target of 10 billion euros, a return on equity (ROE) of over 12%, and a common equity tier 1 (CET1) capital ratio of over 13.75%.

However, to achieve these goals, some growing pains are inevitable—5,200 employees will be laid off before 2028, with about half achieved through natural attrition and the other half through forced reductions.

Key Action: Sell Off Consumer Loan Business

ABN AMRO announced the sale of its personal loan business Alfam to the Dutch agricultural bank Rabobank. The transaction is expected to be completed in the third quarter of 2026.

After the transaction is completed:

• Increase in Capital Adequacy Ratio: CET1 ratio increased by approximately 5 basis points.
• Asset Side Optimization: Reduce approximately 1.2 billion euros in Risk-Weighted Assets (RWA)
• Book Loss: Approximately 100 million euros

Both brands, Defam and Freo, will be retained, and Ron van Vliet, CEO of Freo under Rabobank, will serve as the CEO of the merged entity.

Strategic Intent

ABN AMRO's core strategy is clear: focus on the Dutch retail market, optimize the cost structure through layoffs and asset divestitures, and free up capital for high-return businesses. Low-margin businesses like consumer loans are thus exiting, leaving them to be operated by specialized consumer finance institutions.

This operation is in line with the light-armed approach of other European banks—exchanging strategic contraction for high-quality growth.