ABN AMRO presents outcome of strategy review and hosts virtual Investor Update
Clear vision of the bank we want to be
- ‘A personal bank in the digital age’ serving clients where we have scale in the Netherlands and Northwest Europe
- Our clients’ first choice partner in sustainability in climate change, circular economy and social impact
- A future-proof bank, rigorously simplifying and centralising the operating model, enabling us to focus on clients and work more efficiently
- Committed to our moderate risk profile; culture and licence to operate are clear priorities
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Financial targets reflecting economic outlook
- Safeguarding income by increasing market share in our focus growth segments
- Costs no higher than EUR 4.7 billion in 2024, reflecting EUR 700 million savings
- Execution discipline and CIB non-core wind-down underpin moderate risk profile; cost of risk reconfirmed at 25 to 30 basis points through-the-cycle
- ROE target for 2024 of around 8%; ROE ambition of 10% remains, subject to interest rate normalisation
- Basel IV CET1 target of 13%. Threshold for share buybacks above 15% (subject to regulatory approval), to be recalibrated when uncertainties reduce
- Dividend pay-out ratio of 50% of reported net profit
Today, ABN AMRO is hosting a virtual Investor Day. Its theme: ‘A personal bank in the digital age’.
Robert Swaak, CEO, comments: ‘Today we present the outcome of the strategy review and our vision for the bank. Our strategic pillars – customer experience, sustainability and future-proof bank – remain our guiding principles in acting on our purpose ‘Banking for better, for generations to come’. With our strong brand and attractive market positions across all segments we have a strong foundation. Our strategy review now gives us a distinct profile and focus. The wind-down of the CIB non-core portfolio as announced in August was a first step. Today we announce we will be a personal bank in the digital age, serving clients where we have scale in the Netherlands and Northwest Europe.
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A personal bank in the digital age with a focus on segments where we have scale
We will focus on attractive segments in the Netherlands and Northwest Europe where we can grow profitably. In the Netherlands we will grow in the segments wealthy clients, affluent clients and mid-to large corporates, where we leverage our expertise. We will further develop our leading positions in mortgages and SMEs with new propositions, aiming to increase our market share in both segments to above 20%. In Northwest Europe we will leverage our domestic expertise in the energy, digital and mobility transition, aiming for a top 3 market position in selected niches. We remain open to bolt-on acquisition opportunities, especially in private banking.
We are a personal bank in the digital age, engraining the customer experience. Our trusted relationships with clients, together with our capabilities across all client segments, enable us to support them at all important financial steps in their lives. We offer both convenience and expertise. We deliver a convenient daily banking experience increasingly digitally. At moments that matter we support our clients with sector and sustainability expertise.
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