ABN Amro exits trade, commodity finance in corporate bank shake-up

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ABN Amro is to end all trade and commodity financing after a string of losses, in a massive overhaul of its activities that will see the Dutch bank cut 800 jobs.

Write-offs at ABN’s corporate bank hit 1.4 billion euros in the first half, up from 128 million euros a year before, as oil and gas sector loans soured along with the economic outlook and large Asian clients got into trouble.

It also had nearly $300 million in outstanding loans to Singapore-based Hin Leong Trading, whose founder admitted to hiding hundreds of millions of dollars in losses. The clearing and European parts which ABN aims to keep, however, were not without their own problems as impairments jumped to 591 million euros in the second quarter.

ABN took a $200 million first quarter loss on clearing after a U.S. hedge fund missed its margin requirements.

 

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