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On 26 November ABN AMRO, one of the largest Dutch banks, announced its plans to wind down the international operations of its asset-based financing division by the end of 2026.
On 26 November ABN AMRO, one of the largest Dutch banks, announced its plans to wind down the international operations of its asset-based financing division by the end of 2026.
Instead, it will focus its efforts in Northwestern Europe and its finance and advisory services.
This decision is expected to affect the bank’s invoice financing, factoring, and cross-border financing operations as well.
After an internal review of the asset-based financing division’s activities, ABN AMRO said it will “materially reduce the [division’s] international footprint”, winding down non-strategic client portfolios in the UK and restructuring its operations in Germany. The bank will now refocus on its three strategic priorities: the new energy, digital, and mobility transitions.
The move is hoped to strengthen ABN AMRO’s international position and ensure long-term profitability. The bank expects the reorganisation to benefit the CET1 capital ratio and the return on equity by the time it is completed.
ABN AMRO is not the first bank to wind down its asset-based lending operations: Societe Generale sold its equipment finance division to Group BPCE in April of this year, and the Hampshire Trust Bank announced the closing of its asset finance division last month.
As institutions face pressure to invest in sustainability and maintain a strong strategic position, many have shifted resources away from the sometimes unpredictable asset-based and trade finance operations to commercial operations and ESG themes like green energy and digital services.
