ABN AMRO to scale back asset-based financing activities

ABN AMRO has announced a strategic realignment of its Asset Based Financing (ABF) operations in the United Kingdom and Germany as part of its broader Northwest Europe strategy.

In a statement, the bank said that this move reflects their commitment to strengthening their position in the region while focusing on long-term profitability and sustainable growth.

Amidst a wave of banks exiting the asset finance market, including Hampshire Trust Bank and Societe Generale, ABN AMRO’s decision to scale back its ABF operations underscores ongoing debates about the profitability of asset finance, particularly for bank-owned institutions.

Following a comprehensive review of its ABF division, ABN AMRO has decided to significantly reduce its international footprint. This includes an orderly wind-down of non-strategic client portfolios in the UK and a reorganisation of ABF activities in Germany. ABN AMRO noted that these adjustments aim to optimise the bank’s resources and align its efforts with strategic priorities in Northwest Europe.

Looking forward, ABN AMRO’s Corporate Banking division will continue to invest in and expand client services, particularly in key transition areas such as new energy, mobility, and digital transformation.

The bank anticipates that the restructuring will positively impact its CET1 capital ratio and return on equity over time. Most of the changes are expected to be finalised by the end of 2026. Regulatory approvals and employee consultation processes are underway to ensure compliance and support for the affected stakeholders.