Winner ABN AMRO Art Prize exhibits in Amsterdam Hermitage from 3 September
ABN AMRO Art Prize winner Evelyn Taocheng Wang’s exhibition in the Amsterdam Hermitage is opening on Thursday 3 September
The title of her exhibition – Het bloemblaadje, dat tijdens het ochtendkrieken was gevallen, paktte ik op in de avondschemering – has a purposefully included typo and is a quote she translated from a book by Chinese writer Lu Xun (1881-1936) about his childhood home, a source of memories to him.
Evelyn Wang’s exhibition shows how language and architecture are interwoven with one’s identity. She acquired Dutch citizenship in 2019, which is why her ‘new’ identity and Dutch culture are important themes in the exhibition.
ABN AMRO Art Prize
The ABN AMRO Art Prize aims to promote art talent in the Netherlands. Quality and individuality are the main criteria. The winner is awarded an exhibition in the Amsterdam Hermitage and in Circl.ART, including a corresponding publication and a sum of 10,000 euros. Additionally, some of the artist’s works will be purchased to be part of the ABN AMRO art collection.
The Art Prize is part of the bank’s sponsorship policy, which focuses on passionate individuals from the domains of sport, art & culture and society.
ABN AMRO appoints Gerard Penning as Chief Human Resources Officer
ABN AMRO announced the appointment of Gerard Penning as its Chief Human Resources Officer and as a member of ABN AMRO’s Executive Committee (ExCo) from 1 August 2020. Gerard joins ABN AMRO from Shell, where he was Executive Vice President HR Downstream.
Gerard Penning (1963) brings to ABN AMRO over two decades of experience in strategic human resources management on a global scale. He will provide overall leadership and guidance to the ABN AMRO HR function by overseeing talent acquisition, -management and succession planning, promoting a diverse and inclusive workplace, leadership development, compensation & benefits, and employee relations and representation.
Robert Swaak, ABN AMRO CEO comments: “As the new CEO of ABN AMRO I have been very impressed with the dedication of our employees and the quality of their work helping our clients navigate these challenging times. With Gerard’s experience, passion and his ability to connect easily with people across all levels of the organisation, we will continue to drive a culture of excellence among our over 18,000 dedicated staff.”
Gerard Penning: “As a Board Member of the Sustainable Energy for All (SEforALL) organisation, launched in 2011 by former UN Secretary-General Ban Ki-moon, I am very proud to become part of ABN AMRO and I feel very inspired by the bank’s purpose banking for better, for generations to come. Banking for better also means giving it my all as the Chief HR Officer to create and foster an open and inclusive working environment for everyone, where teams can excel in supporting our clients in their transition to sustainability. At Shell, ‘thriving in the energy transition’ has been a key strategic pillar for many years, so I am pleased that I can continue to grow this transition at ABN AMRO.”
Aegon Asset Management and ABN AMRO join forces to introduce Impact Equity Fund
Aegon Asset Management and ABN AMRO are working together on the development of an Impact Equity Fund offering for their clients. This will provide clients with the opportunity to invest in companies, organizations, and funds with a social and environmental impact alongside financial return.
Both Aegon Asset Management and ABN AMRO are deeply motivated to develop impact investing further. Companies to be included in the ABN AMRO Aegon Global Impact Equity Fund are selected based on strong ESG performance and positive impact. Companies to be included in the ABN AMRO Aegon Global Impact Equity Fund are selected based on strong ESG performance and positive impact. Companies involved in controversial activities are excluded. With this partnership, we combine two extensive and distinctive distribution networks. It is expected the Impact Equity Fund will be live before the end of the year.
Pieter van Mierlo, CEO of ABN AMRO Private Banking: “Our clients increasingly ask for types of investments that ‘do good’. We already offer sustainable investments. More than half of our new private banking clients chose the sustainable option. And that is a great development. Some clients would like to realize more impact with their investments. We are very pleased to be introducing an Impact Equity Fund together with our partner Aegon Asset Management.”
Aegon Asset Management’s CEO Bas NieuweWeme says: “At Aegon Asset Management responsible investment is in our DNA. We have been pioneers in this market for more than 30 years, since we launched our first responsible investment fund. We are proud to be working with ABN AMRO on this exciting new ESG impact proposition, which allows investors to benefit from our rich experience in this area.”
Impact investment was considered a niche market but that is not the case nowadays as it is estimated that the overall impact investing industry has an AuM of USD 715 billion as of the end of 2019 (Global Impact Investment Network). Impact investors deploy capital through a range of asset classes. Investments in private markets remain the most common, but large growth is seen in allocations to public equity and public debt. According to the United Nations, however, available finance is not channelled towards sustainable development at the scale and speed required achieve the Sustainable Development Goals (SDGs) and goals of the Paris Agreement.
ABN AMRO reports net loss of EUR 395 million in Q1 2020
ABN AMRO reports net loss of EUR 395 million in Q1 2020
Net loss marked by high impairments due to Covid-19, oil prices and market developments
Supporting clients in response to Covid-19 crisis; several measures implemented
Services maintained through digital offering and video banking while working from home
Strong operational performance; net interest income held up well and fees were up
Costs were lower, benefiting from continued cost management
Strong capital position; CET1 ratio of 17.3% under Basel III and around 14% under Basel IV
Review underway to ensure we deliver on our strategic pillars; update after the summer
Priorities include navigating Covid-19 crisis, CIB review and AML activities
Robert Swaak, CEO, comments:
“Covid-19 is first and foremost a crisis of personal health, but it is also having a significant impact on the economy. In line with our purpose ‘Banking for better, for generations to come’, we are supporting our clients wherever possible. Our strategic investments in IT and digital services in the past years have enabled us to continue serving clients without interruption. We are in close dialogue with our clients and have been implementing several support measures, including automatic deferral of interest and principal payments.
At the FY 2019 results, we announced a review of Corporate & Institutional Banking’s (CIB) activities. Although in the past few years some progress has been made in improving returns, this has not resulted in the required profitability. Also, the risk profile of parts of CIB is not fully aligned with that of the bank. The ongoing CIB review is a short-term priority for me and we will share the outcome in August.
My priorities in the coming period, in addition to the CIB review, are to navigate the Covid-19 crisis and to focus on anti-money laundering activities (AML). In addition, we will review our strategy to ensure we deliver on our three strategic pillars going forward and will provide an update after the summer, also addressing operational efficiency, financial targets and capital.
Impairments were very high (EUR 1.1 billion) due to two exceptional client files and significant upfront collective provisioning for sectors immediately impacted by Covid-19 and oil prices. As a result, we reported a net loss of EUR 395 million over the first quarter. Net interest income held up in the current environment, fees were higher and costs were lower, benefiting from continued cost management. The resulting ROE was a disappointing -8.7% and the cost/income ratio was 67.6%. Our capital position remains strong, with a Basel III CET1 ratio of 17.3% and a Basel IV CET1 ratio of around 14%, comfortably above the regulatory minimum requirements.
It is a challenging, yet exciting time to start as the CEO of ABN AMRO. ABN AMRO is a well-recognised player in Dutch society, with a strong brand and a solid capital and liquidity position. The bank has strong fundamentals and the priorities we need to address are clear. Building on our strategy and strong market positions, I am determined to deliver results in the years to come.”
ABN AMRO – No forced home sales until 1 July
ABN AMRO and other Dutch banks and insurers have agreed with the Dutch government to refrain from imposing forced home sales due to overdue payments until at least 1 July 2020.
Given the severity of the coronavirus crisis, homeowners must be able to remain in their homes even if payment arrangements and default management have proved ineffective in easing the situation. By making this commitment, mortgage providers are living up to their social responsibility in these exceptional circumstances.
The Dutch cabinet has announced financial support measures for employers and workers who have lost income, revenue or their jobs. These emergency measures will enable many households to pay their monthly bills. For households struggling financially despite these measures, mortgage providers are exploring appropriate solutions, such as adjusting instalments or deferring payments. Moreover, banks and insurers will refrain from imposing forced home sales until at least 1 July.
Forced sales occur relatively infrequently because mortgage providers focus on identifying payment problems at an early stage. Coaching clients often helps to prevent forced sales. The home might still be sold, however, if the lender and the consumer decide together that this would be the best solution for all, for example because the consumer would be unable to pay their bills in the long term and can move into another suitable home. A forced sale will also be imposed if the situation involves criminal activities, fraud, improper use of the home, threats or vacancy.
ABN AMRO to postpone dividends on the recommendation of the European Central Bank; expects loss in Q1 2020
ABN AMRO has taken notice of the recommendation of the European Central Bank (ECB) to credit institutions under ECB supervision to conserve capital and refrain from making dividend payments and perform share buy-backs until at least 1 October 2020 in order to support the economy in an environment of heightened uncertainty caused by COVID 19.
ABN AMRO’s annual general meeting is expected to take place as planned on 22 April 2020. At the recommendation of the ECB, ABN AMRO has decided to keep the initial proposal for distribution of the dividend for the financial year 2019 but make the actual payment conditional to the reassessment of the situation once the uncertainties caused by COVID 19 disappear (and, in any case, not before 1 October 2020). In addition, ABN AMRO will not pay an interim dividend in August 2020.
ABN AMRO has a strong capital position (CET1 of 18.1% at YE 2019) and a significant buffer above its minimum capital requirements. Given our strong capital and liquidity position and the bank’s important role in the Dutch economy, ABN AMRO was able to announce several measures to support clients affected by the COVID 19 virus in the past 2 weeks. For almost all Commercial Banking clients payments of interest and principal are automatically deferred for 6 months, unless clients opt-out. And clients with a mortgage or a consumer loan affected by COVID 19 can obtain a three month deferral of interest and principal payments.
The long term impact of the Corona virus on the economy, on our clients and on the quality of our loan portfolio is currently uncertain. We expect the FY2020 and especially Q1 2020 cost of risk to be materially higher than the through-the-cycle cost of risk range of 25-30bps. Together with the incidental loss at ABN AMRO Clearing, we expect to record a loss in Q1 2020.
ABN AMRO extends support measures for businesses affected by coronavirus
Last week ABN AMRO announced that, for Commercial Banking clients with a credit facility of up to 2.5 million euros, payment of principal and interest will be deferred for six months.
Today ABN AMRO is extending this measure to Commercial Banking clients with a credit facility with a principal and/or a limit of up to 50 million euros.
Principal and interest payments will not be collected from these clients from April through September. They will be allowed to make these payments at a later date. Any client that does not need to defer payment is required to inform the bank by 31 March 2020 at the latest. Payment will not be deferred for these clients.
Breathing space
Daphne de Kluis, CEO of Commercial Banking: “The deferral measure gives clients more scope in their liquidity position. And by automatically implementing it, we can make these arrangements quickly for a large group of businesses. We saw last week that this works well and gives clients peace of mind. We have therefore decided to raise the limit to 50 million euros. This will give larger Commercial Banking clients breathing space too.”
Large government support package
ABN AMRO’s measures are in addition to a large package of measures offered by the Dutch government. Businesses can apply for additional government-guaranteed loans from their banks, including under the SME credit guarantee scheme. Other parts of the government support package also offer businesses extra liquidity.
Many questions
Many businesses are eager to make use of support and deferral measures, and many have questions or are applying for a loan under the SME credit guarantee scheme. As a result, they may have to wait. Priority will be given to clients who are being immediately affected and/or hit hard financially.
No impact? Inform the bank
Deferral of interest and principal payments is explicitly intended for businesses that need support due to the impact of coronavirus. Deferral of payment will be implemented automatically for Commercial Banking clients with a credit facility with a principal and/or limit of up to 50 million euros. ABN AMRO is doing this to offer fast support to a large group of businesses. Clients in this category who do not need this support are required to inform the bank of this by 31 March 2020 at the latest. If they do not do so, payment will be automatically deferred. Details of the measure for credit facilities of up to 2.5 million euros are available on our website; this measure will now also apply to Commercial Banking clients with a credit facility with a principal and/or limit of up to 50 million euros. The website also describes the scope of the measure, and how and when payment must be made at a later date. Businesses that do not need support can inform the bank of this on our website.
Commercial Banking clients
Commercial Banking clients are companies with annual turnover of up to 250 million euros. From today, the deferral measure will apply to all Commercial Banking clients with a credit facility with a principal and/or limit of up to 50 million euros, with the exception of a number of specific types of financing, such as commercial finance, leveraged finance for professional investors, club deals and syndicated loans with several financers, and financing for commercial real estate in excess of 2.5 million euros. However, real estate clients with a credit facility of between 2.5 million euros and 50 million euros that lease property to hard-hit sectors are eligible for deferral.
Loans managed by the Recovery team of the Financial Restructuring & Recovery department are not in scope. This also applies to loans linked to interest rate derivatives. Clients with interest rate derivatives can contact the bank to discuss their options.
Above 50 million euros
Where possible customised arrangements will be offered to Commercial Banking clients with a credit facility in excess of 50 million euros. This is also the case for large corporate clients served by Corporate & Institutional Banking (annual turnover in excess of 250 million euros).
Commercial Banking’s total loan portfolio was 42.6 billion euros at year-end 2019. Around 40% of this loan volume concerns clients in scope of the new measure. The impact of the coronavirus on the economy, on our clients and on the quality of our loan portfolio is currently uncertain.
ABN AMRO: Two thousand laptops for at-home learning
ABN AMRO is donating two thousand laptops to children who, due to the corona outbreak, are forced to attend class from home but don’t have a laptop to do this. Next Wednesday, 25 March, the laptops will be handed to the Youth Education Fund (Jeugdeducatiefonds). They will ensure that these laptops end up in the right place.
Last week schools were informed that they had to close. Teachers from all over the country immediately went into high gear to facilitate at-home learning. The Youth Education Fund and ABN AMRO joined in. The result of these efforts is that ABN AMRO will help facilitate at-home learning for two thousand children from less fortunate families. IBM will install Microsoft Office on the laptops, after which they will be distributed by the Youth Education Fund.
The Youth Education Fund immediately started worrying when they heard that schools were closing. More than half of the students attending the schools they help grow up in a difficult home environment due to financial or social problems. It’s these children that like being at school because it’s a safe and familiar environment for them. Home learning is also quite a challenge when you don’t have a laptop or computer.Arie Slob, Minister of Education, praised the Youth Education Fund and ABN AMRO for their energy and their fast action: “We are joining hands to give all children a chance, even in these exceptional times.”
ABN AMRO Ventures to participate in Penta’s EUR 18.5 million fundraise
Founded in December 2017, Penta is a digital platform for business banking with over 16,000 customers. Companies can apply for a business account within minutes and receive a German IBAN, debit cards for expense management and other financial services. The company is headquartered in Berlin, with offices in Milan and Belgrade. ABN AMRO Ventures is part of the first closing EUR 18.5 million series B with, as a co-lead, RTP Global and HV Holtzbrinck Ventures and participation from Berliner Volksbank Ventures and Finleap.
Hugo Bongers, head of ABN AMRO Ventures: “We are investing in Penta because we believe in its dynamic and experienced management team, who we know well. We believe in their vision to empower SMEs through banking. In Germany, Penta is playing a crucial role in transforming business banking from the core. We see good opportunities for cooperation and exchange of information between Penta and our key digital propositions towards SME clients in the Dutch market, among which of course New10. Like previous investments by ABN AMRO Ventures, this one too reinforces ABN AMRO’s access to the local fintech ecosystem of companies, investors and industry leaders.”
Marko Wenthin, CEO & Co-Founder of Penta: “We are delighted to see the commitment to our vision from such strong and strategic partners as ABN AMRO Ventures: reshaping business banking for small and medium-sized enterprises. SMEs are the engine of countries’ economies. With our approach of building a platform for them by focusing on their business needs and offering them a veritable one-stop-shop of services, we go way beyond banking. By growing the round of investors, Penta will benefit from a wider network across Europe, future co-operation and a significant acceleration of growth. We have known ABN AMRO Ventures for many years and we are looking forward to expanding our investment and partnership.”
The investment in Penta is the eleventh investment by ABN AMRO Ventures, previously named ABN AMRO Digital Impact Fund. ABN AMRO Ventures is the bank’s corporate venture fund and makes strategic investments in innovative technology companies to boost and accelerate its digital transformation. The fund has EUR 100 million assets under management and holds positions in Fenergo, Trifacta, Thetaray, Tealium, Tink, BehavioSec, solarisBank, Ockto and Crosslend. It previously invested in Cloud Lending Solutions (exit in 2018).
ABN AMRO convenes 2020 Annual General Meeting
Today, ABN AMRO Bank N.V. has published the convocation and meeting materials for its Annual General Meeting, to be held in Amsterdam on 22 April 2020.
The meeting materials and the convocation, including the agenda and explanatory notes, are available on the ABN AMRO website (www.abnamro.com/shareholdermeeting).
The agenda includes the proposal to re-appoint Arjen Dorland, Jurgen Stegmann and Tjalling Tiemstra as members of the Supervisory Board. In addition, in line with new legislation introduced in the Netherlands, the remuneration policies for the Executive Board and the Supervisory Board will be submitted to the Annual General Meeting for approval.
At this Annual General Meeting, Robert Swaak will be introduced as the new CEO of ABN AMRO Bank N.V., succeeding Kees van Dijkhuizen, subject to regulatory approval.
The Annual General Meeting will be held at ABN AMRO’s head office, Gustav Mahlerlaan 10, 1082 PP Amsterdam, at 14:00 CET. It will also be webcast on www.abnamro.com/shareholdermeeting
Holders of depositary receipts can also attend the meeting by proxy or virtually via www.abnamro.com/shareholder