Core Viewpoint - ABN Amro is implementing a significant restructuring plan that includes cutting 5,200 full-time positions by 2028 to reduce costs and refocus on core business activities [1][2] Group 1: Job Cuts and Financial Objectives - The planned job cuts will impact over 20% of ABN Amro's workforce across all divisions, including recently acquired entities [1] - The bank aims for a return on equity of at least 12%, a cost-to-income ratio below 55%, income exceeding €10 billion ($11.57 billion), and a CET1 capital ratio above 13.75% by 2028 [2] Group 2: Strategic Focus and Capital Allocation - ABN Amro plans to reduce capital allocation to its corporate bank to around 50% while enhancing its Dutch retail banking position through digital initiatives and investments in brands like Tikkie and BUUT [3] - The bank is simplifying its organizational structure and modernizing its technology infrastructure [3] Group 3: Long-term Ambitions and Market Position - The CEO emphasized a strategy focused on sustainable and profitable growth in Northwest Europe, aiming to strengthen its position in Dutch retail banking and become a top-five private bank in Europe [4] - Supporting family wealth and businesses is a priority, alongside driving growth in key European transitions such as digitalization, energy, mobility, and defense [5] Group 4: Sale of Personal Loan Subsidiary - ABN Amro has agreed to sell its personal loan subsidiary Alfam to Rabobank, which is expected to improve its CET1 capital ratio by around five basis points and reduce risk-weighted assets by approximately €1.2 billion [6] - The transaction is anticipated to close in the third quarter of 2026, subject to regulatory and works council approval [6] Group 5: Leadership Stability - The bank's leadership team is expected to remain stable, with plans to nominate three chief commercial officers for a second four-year term, pending necessary approvals [7]

Summary of ABN AMRO Bank Capital Markets Day Company Overview - **Company**: ABN AMRO Bank (OTCPK:AAVM.Y) - **Event**: 2025 Capital Markets Day - **Date**: November 25, 2025 - **Location**: Amsterdam Strategic Priorities 1. **Grow Profitably**: - Targeting a return on equity (ROE) of at least 12% by 2028, up from 9.5% today [4] - Expected income generation of over EUR 10 billion by 2028 from organic growth and acquisitions [4] - Focus on strengthening position in the Dutch retail market and becoming a top five private bank in Europe [5][6] 2. **Right-Size Cost Base**: - Aim for a cost-income ratio of 55% or less, down from over 60% [4] - Reduction of 5,200 FTEs by 2028 compared to 2024 [17] - Significant cuts in consultancy spending and operational simplification [11][12] 3. **Optimize Capital Allocation**: - Decrease capital allocated to corporate banking from 58% to around 50% by 2028 [4] - Target a CET1 ratio above 13.75% [5] - Commitment to return up to 100% of capital generated over the 2026-2028 period [5] Financial Targets - **Return on Equity**: At least 12% by 2028 [4] - **Cost-Income Ratio**: 55% or less by 2028 [4] - **Income Generation**: Over EUR 10 billion by 2028 [4] - **CET1 Ratio**: Above 13.75% [5] - **Shareholder Payout**: Up to 100% of capital generated from 2026-2028 [5] Key Enablers 1. **Technology and Data Leadership**: - Investment in AI and digital capabilities to enhance client services and reduce costs [10][19] - Successful decommissioning of over 700 applications with a target of 1,000 by 2028 [18] 2. **Risk Management Strengths**: - Maintaining a high-quality balance sheet with a low cost of risk [24] - Focus on low-risk touch and stable economies [24] 3. **High-Performing Workforce**: - Investment in critical skills, particularly in data, digital, and AI [24] - Commitment to managing workforce transitions with transparency [25] 4. **Commercially Focused Sustainability**: - EUR 10 billion renewable financing target for 2030 [25] Market Position and Opportunities - **Dutch Market**: - Almost one-fifth of Dutch mortgages held by ABN AMRO [10] - Market leader in wealth management with a strong foothold in SMEs and corporate clients [10] - **Acquisition of NIBC**: - Intended acquisition expected to strengthen mortgage and deposit positions, adding EUR 28 billion in high-quality Dutch mortgages [36] - NIBC's strong presence in rural regions complements ABN AMRO's urban focus [37] - **Technological Advancements**: - Embracing AI to improve client services, with a future where AI agents interact seamlessly [10] - Digital challenger brands like Tikkie and Boot targeting younger generations [6][40] Wealth Management and Corporate Banking - **Wealth Management**: - Targeting annual growth of 8-10% in client assets, aiming for over EUR 335 billion by 2028 [49][56] - Focus on next-generation clients and female clients, with proactive engagement strategies [50][52] - **Corporate Banking**: - Targeting a reduction of risk-weighted assets (RWAs) from EUR 88 billion in 2024 to EUR 78 billion in 2028 [27] - Emphasis on dual client relationships to enhance loyalty and profitability [60] Conclusion - ABN AMRO's strategic plan focuses on profitable growth, cost efficiency, and optimized capital allocation, supported by technology and a strong workforce. The bank aims to strengthen its market position in the Netherlands and across Europe while delivering attractive shareholder returns.

Financial Targets & Growth Strategy - The company aims for a Return on Equity (ROE) greater than 12% by 2028 [5, 79] - The company targets a Cost/Income (C/I) ratio of less than 55% by 2028 [5, 79] - The company aims to achieve an income greater than €10 billion by 2028 [5, 79] - The company targets a CET1 ratio greater than 13.75% [5, 79] - The company plans to allocate approximately 50% of its capital to the Corporate Bank, excluding Clearing [5, 79] Cost Reduction & Efficiency - The company plans to reduce FTEs (Full-Time Equivalents) by 5,200 by 2028 [42] - The company aims to reduce its cost base to around €5.5 billion by 2028 [210] - The company expects to realize approximately €900 million in gross cost savings between 2024 and 2028 [204] Business Expansion & Capital Allocation - The company aims to grow client assets in Wealth Management to over €335 billion by 2028 [35, 71, 135, 191] - The company plans to allocate approximately €1 billion in capital for NIBC, expecting a return on invested capital (RoIC) of around 18% [69, 119] - The company intends to generate at least €7.5 billion of capital over the period 2026-2028 [51, 52, 234]

Core Insights - ABN AMRO Bank reported a net profit of EUR 619 million for Q1 2025, with a return on equity of approximately 10% [3][7] - The Dutch economy shows resilience with GDP growth above the Eurozone average, low unemployment, and a strong housing market, contributing to ABN AMRO's solid performance [2] - The bank's strategic focus on key growth areas and credit quality has led to growth in loan books, including a EUR 1.7 billion increase in the mortgage portfolio and a EUR 0.9 billion increase in corporate loans [7] Financial Performance - Net interest income for Q1 2025 was EUR 1.56 billion, a decrease of 2% compared to Q1 2024, while net fee and commission income increased by 8% to EUR 507 million [12] - Operating income totaled EUR 2.145 billion, down 2% year-on-year, with operating expenses rising to EUR 1.309 billion, reflecting a 4% increase [12] - The cost/income ratio stood at 61.0%, indicating a need for continued cost discipline, with underlying costs declining by 5% compared to Q4 2024 [7][12] Capital Position - ABN AMRO maintains a strong capital position with a Basel IV CET1 ratio of 14.7%, allowing for continued investment in strategic priorities [5][7] - The bank has submitted a final application to transition to less sophisticated capital models, which is expected to enhance stability and predictability in capital ratios [5] Customer Experience and Innovation - The bank's Net Promoter Score for Personal & Business Banking improved, reflecting positive client feedback on customer service and digital offerings [6] - The Tikkie payment app has reached 10 million active users, processing nearly 700,000 transactions during King's Day, showcasing the bank's innovative approach [6] Sustainability Initiatives - ABN AMRO launched a free online Green Building Tool to assist commercial real estate clients in energy savings and improving energy labels [9] - The bank has entered into a EUR 1 billion risk-sharing agreement with the EIB Group to support Dutch SMEs with favorable financing conditions, enhancing economic growth and sustainability efforts [9]