Daphne de Kluis, CEO Commercial Banking ABN AMRO, to step down on 30 September 2021
Daphne de Kluis, CEO of Commercial Banking and a member of ABN AMRO’s Executive Committee, announced that she will be pursuing her career outside ABN AMRO. The process of finding a successor has been initiated.
Robert Swaak, CEO of ABN AMRO: “I want to thank Daphne for her valuable contributions to ABN AMRO for the past 24 years, especially in her role as a member of the Executive Committee since 2017. As an ExCo member and CEO of Commercial Banking, Daphne has always shown entrepreneurship and a genuine passion and dedication to our leadership, colleagues and customers. Daphne is a role model for many women and men in our company.”
Daphne de Kluis, CEO of Commercial Banking: “It is with mixed feelings that I will leave ABN AMRO after being part of the ABN AMRO family for so long. ABN AMRO is executing its reviewed strategy and I’m proud of the journey the bank has made. I believe all the levers of success are present to deliver value for all our stakeholders. While sincerely grateful for and humbled by everything ABN AMRO has given me, I’m also excited to start a new chapter in my career and am looking forward to that.”
Until 30 September 2021, Daphne will be fully committed to ABN AMRO, also to facilitate an orderly transition to her successor, once selected. Further announcements on her succession will be made in due course.
Lars Kramer appointed as CFO of ABN AMRO Bank N.V.
Lars Kramer has been appointed by the Supervisory Board as a member of the Executive Board and Chief Financial Officer (CFO) of ABN AMRO Bank N.V., after having received approval by the European Central Bank.
Lars Kramer has been appointed as per 1 June 2021 for a term of four years, ending at the closure of the annual general meeting in 2025. The intended appointment of Lars Kramer was announced on 10 February 2021.
Diana Shipping Inc. Announces Signing of a Sustainability Linked Loan with ABN AMRO Bank to Refinance Four Separate Existing Loans
Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, announced that on May 14, 2021, it signed a sustainability linked loan facility with ABN AMRO Bank N.V., through six wholly-owned subsidiaries (the “Borrowers”), in the amount of US$91 million. The purpose of the senior secured term loan facility was the refinancing of existing indebtedness on the Borrowers’ vessels, m/v Medusa, m/v New Orleans, m/v Los Angeles, m/v Philadelphia, m/v Santa Barbara and m/v Artemis, and for general corporate purposes.
Commenting on this transaction, the Company’s Chief Executive Officer, Ms. Semiramis Paliou, stated:
“We are pleased to have signed this loan agreement with ABN AMRO Bank N.V., which is in accordance with our policy of managing our cash flow and loan maturities proactively for the benefit of our shareholders. The added sustainability aspect is essential not only for the potential additional cost savings, but more importantly because it is in line with the Company’s commitment towards its long-term sustainability goals.”
Upon completion of the previously announced sale of one Panamax dry bulk vessel, the m/v Naias, Diana Shipping Inc.’s fleet will consist of 36 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 10 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Naias, is approximately 4.7 million dwt with a weighted average age of 10.24 years.
ABN AMRO reports modest loss of EUR 54 million in the first quarter
Net loss of EUR 54 million included AML settlement of EUR 480 million recorded in the first quarter
Operational performance in line with previous quarters; net impairment release of EUR 77 million
Dutch economy still weathering the Covid crisis relatively well; rebound expected in second half of the year
Full-year cost of risk (excluding CIB non-core) at or below through-the-cycle guidance of 25-30 basis points
Mortgage market share increased to 17%; reflecting strong operational capabilities
Strong capital position; Basel III CET1 ratio of 17.4% (Basel IV above 15%)
Basel IV threshold of 15% for share buybacks to be recalibrated at Q4 2021; stand ready to pay FY 2019 dividend
Robert Swaak, CEO, comments:
“Last month, we accepted a settlement offer of EUR 480 million from the Dutch Public Prosecution Service as the outcome of the AML investigation into ABN AMRO Bank N.V. in the Netherlands. We are fully committed to our moderate risk profile and our role as a gatekeeper of the financial system. The settlement means we can now turn to the future and focus on our strategic priorities and financial targets. Our market share of new production in mortgages increased to 17% in Q1 2021, reflecting strong operational capabilities valued by clients. We are making good progress in winding down the CIB non-core business, supported by the recently announced disposal of part of our Trade & Commodity Finance portfolio.
We continue to navigate the bank through Covid-19 and support our clients wherever possible. The Dutch economy continues to weather the Covid crisis relatively well, supported by government programmes. We expect a strong economic rebound later this year as lockdown restrictions ease, provided the vaccination programme progresses steadily.
Excluding the EUR 480 million AML settlement recorded in the first quarter, we reported a EUR 426 million net profit. Operational performance was in line with previous quarters. Net interest income was impacted by continued pressure on deposit margins and lower corporate loan volumes as the CIB non-core portfolio was wound down further. We achieved the first cost reductions as part of our goal of achieving EUR 700 million in cost savings by 2024. Our AML remediation programme is on track; we reconfirm our overall cost guidance. Impairments showed a net release of EUR 77 million for the first quarter as credit quality remained stable while government support continued. Based on the current economic outlook we expect that 2021 cost of risk for the bank (excluding CIB non-core) will be at or below the through-the-cycle guidance of 25-30 basis points. CIB non-core impairments remain uncertain but are expected to be significantly below last year.
Our capital position remained very strong with a Basel III CET 1 ratio of 17.4% (Basel IV above 15%) after absorption of the AML settlement and finalisation of the targeted review of internal models. The Basel IV threshold for share buybacks, currently at 15%, will be recalibrated at Q4 2021. We stand ready to pay FY 2019 dividend, ECB conditions permitting.”
Related documents
ABN AMRO Press Release Q1 results 2021
PDF195KB12 May 2021
ABN AMRO Bank Quarterly Report 2021 Q1
PDF345KB12 May 2021
ABN AMRO announces decisions of 2021 Annual General Meeting
ABN AMRO Bank N.V. held its Annual General Meeting yesterday. 81.11% of the total issued capital and an equal percentage of the voting rights were represented at the meeting.
The Annual General Meeting adopted ABN AMRO’s audited financial statements for 2020 and approved the remuneration report and the proposal to issue and buy back shares. In addition, EY was reappointed as the external auditor for the coming two years.
At the Annual General Meeting, Lars Kramer was introduced as a member of the Executive Board (Chief Financial Officer), subject to the approval of the European Central Bank. Christian Bornfeld and Tanja Cuppen were reappointed as Chief Innovation & Technology Officer and Chief Risk Officer respectively.
ABN AMRO accepted settlement offer in the anti-money laundering investigation in the Netherlands
Today ABN AMRO Bank N.V. (ABN AMRO) announced that it has accepted a settlement offer from the Dutch Public Prosecution Service (DPPS) in connection with the previously announced investigation by the DPPS into ABN AMRO’s compliance with its obligations under the Dutch Anti-Money Laundering and Counter Terrorism Financing Act (Wet ter voorkoming van witwassen en financiering van terrorisme, AML/CTF Act) between 2014 and 2020. As part of this settlement, ABN AMRO will pay EUR 480 million.
ABN AMRO fully cooperated with the DPPS throughout the investigation. Based on the investigation, the DPPS identified serious shortcomings in ABN AMRO’s processes to combat money laundering in the Netherlands, such as the client acceptance, transaction monitoring and client exit processes (the so-called ‘Client Life Cycle’ processes) in the period between 2014 and 2020, as a result of which, in certain instances, clients were able to abuse ABN AMRO accounts.
ABN AMRO deeply regrets the situation and recognises the seriousness of the matter, and that it has fallen short in the fulfilment of its role as gatekeeper aimed at combatting money laundering. ABN AMRO will continue to make every effort to fulfil its role as gatekeeper.
ABN AMRO CEO Robert Swaak: “As a bank we do not merely have a legal, but also a moral duty to do our utmost to protect the financial system against abuse by criminals. In fulfilling this duty, we aim to make a meaningful contribution to a safer society. Regretfully, I have to acknowledge that in the past we have been insufficiently successful in properly fulfilling our important role as gatekeeper. This is unacceptable and we take full responsibility for this.”
In recent years, ABN AMRO had itself already identified shortcomings in the way it implemented its ‘Client Life Cycle’ processes. To address these shortcomings, the bank has prioritised remediation and enhancement programmes in each of the business lines of the bank over the years, as well as bank-wide with respect to transaction monitoring. ABN AMRO has invested heavily in these remediation and enhancement programmes over several years, including investments in its systems and the growth of its staff . Unfortunately, ABN AMRO has to recognise that, despite all of its efforts and intentions, its improvement programmes have not always had the desired effect, and that several shortcomings, some of which serious, have been identified in its ‘Client Life Cycle’ processes.
In response to the identified shortcomings in its ‘Client Life Cycle’ processes and in order to address increasingly strict regulations and continuously evolving forms of financial crime, ABN AMRO decided to centralise the execution of the ‘Client Life Cycle’ processes in October of 2018. To this end, ABN AMRO set up the Detecting Financial Crime (DFC) programme and made substantial additional (financial) resources available for investments in staff, systems and processes. The DFC programme is progressing according to the timetable as agreed upon with DNB, and the programme is expected to be completed by the end of 2022. By the end of 2020, the total number of full-time employees involved in ABN AMRO’s ‘Client Life Cycle’ processes had increased to 3,800 (one in five jobs at ABN AMRO). The bank is convinced that its current approach is the right way to systematically remediate shortcomings across the bank, and to embed this remediation in its day-to-day operations. Besides this, ABN AMRO is also actively involved in various public-private partnerships aimed at of contributing to safer society.
As part of the settlement announced today, ABN AMRO agrees to pay a fine of EUR 300 million and EUR 180 million as disgorgement. The amount of the fine reflects the seriousness, scope and duration of the identified shortcomings. The amount of the disgorgement reflects the amount of costs that ABN AMRO saved according to the DPPS. The total amount of EUR 480 million will impact the bank’s first quarter results in 2021.
Robert Swaak: “This settlement marks the end of a painful and disappointing episode for ABN AMRO. The lessons we have learned from this experience drive us in our continued effort as gatekeepers to achieve a safer society and a financial system that meets the highest standards of integrity.”
ABN AMRO announces call of SGD 450 million Tier 2 instrument
With reference to the Terms and Conditions of the SGD 450 million Callable Resettable Dated Subordinated Notes due April 2026 callable in April 2021 under the Programme for the issuance of Medium Term Notes of ABN AMRO Bank N.V. with ISIN XS1341466487ABN AMRO announces to exercise its right to redeem these Notes in full on 1 April 2021. Trading will be suspended as of 30 March 2021.
Weak economy has not gripped housing market yet
The weakened economy has not yet taken hold of the Dutch housing market, which is still strong. The limited number of homes that are put up for sale quickly find new owners. The number of transactions is going up, as are house prices. In light of this, ABN AMRO is expecting prices to rise by an average of 5% in 2021.
According to ABN AMRO housing market economist Philip Bokeloh, the projected continued rapid rise this year is due to the so-called carry-over effect, as the strong price rise in the second half of 2020 pushes up the average price increase over 2021. ABN AMRO expects the predicted increase in unemployment to dampen the housing market.
Bokeloh: “Continued strong figures from the housing market and improved confidence have prompted us to raise our estimates again. If prices stabilise at the current level, the average price increase would be 3.5%. The arrival of vaccines also offers more certainty about the future.”
Although the availability of vaccines is reassuring, Group Economics at ABN AMRO does predict rising unemployment this year. If the government ends its emergency salary subsidies and companies carry out the reorganisations they’ve announced, workers will be laid off. This will have ramifications for the housing market, because the size of the mortgage that buyers can take out is income-dependent. In addition, the stimulating effect of low mortgage interest rates is gradually waning. Bokeloh: “Central banks are still applying stimulus measures, but there’s not much scope for a sharp drop in mortgage interest rates and for making home-buying more affordable.”
The housing market will be kept on its feet in the short term, ABN AMRO believes, by government support schemes and the central banks’ stimulus measures. But according to Bokeloh, the housing market will not escape the underlying economic situation entirely unscathed. The bank thinks that the expected labour market decline and the reduced positive effect from low interest rates will be reflected first in fewer transactions and then in a weaker increase in house prices. The number of house purchases in 2021 is expected to be 10% lower than in 2020. In 2022, ABN AMRO is predicting prices to climb by 1% and house purchases to drop by 5%.
ABN AMRO CFO to step down per 28 February 2021
ABN AMRO Bank N.V. announced that its Chief Financial Officer, Clifford Abrahams, has decided to leave ABN AMRO per 28 February 2021 to pursue another opportunity outside ABN AMRO. The process of finding a new Chief Financial Officer has been initiated.
Robert Swaak, CEO of ABN AMRO: “I want to congratulate Clifford with this great new opportunity. I see his leaving as a regretted loss for the bank, though at the same time I fully understand that this opportunity together with his personal wish to work closer to his home and family in the UK is an offer he can’t refuse. Until 28 February 2021 Clifford will be fully committed to ABN AMRO. After our Q4 results in February 2021 we will take time to thank Clifford extensively for his valuable contribution as CFO over the past four years.”
Clifford Abrahams, CFO: “I am excited about this new opportunity closer to home in the UK and at the same time I will be sad to leave ABN AMRO. ABN AMRO has great professionals to work with and a meaningful purpose, Banking for better for generations to come. I have huge respect for Robert and my colleagues in the Executive Committee. Together we have shaped the strategy review. I am really looking forward to taking part in our Investor Update coming 30 November.”
ABN AMRO schedules Investor Update for 30 November and appoints new Head of Investor Relations
ABN AMRO will host the previously announced Investor Update in the morning of Monday 30 November. The event will be held virtually. During the event, ABN AMRO will present the outcome of its strategy review, which will entail clear choices while also addressing operational efficiency, financial targets and capital. Details on how to participate in the event will be shared at a later date.
In addition, ABN AMRO has appointed Ferdinand Vaandrager as Head of Investor Relations with effect from 1 October 2020. Ferdinand acquired over twenty years of experience in financial and capital markets at various international banks. He re-joined ABN AMRO in 2012 as Head of Equities in the Global Markets division and until recently headed the overall Sales organisation.