ABN-Amro is this week expected to unveil a streamlining that could involve the Dutch bank ending or reducing its involvement in a number of international business areas. The shake-up follows a strategy review, under way since late last year. Mr Rijkman Groenink, its new chairman, is due to present his findings to senior management this evening.
Up to 150 executives are to gather at its Amsterdam headquarters for their first such meeting since Mr Groenink took over from Mr Jan Kalff this month. The bank confirmed only that this was the latest in a series of sessions on future strategy.
Mr Groenink is believed to be concerned, however, that the bank's structure is too complex and that it is engaged in too many low-yielding lines of business. Its shares have made no progress in more than two years. It is not clear what areas are likely to be most affected. However, the Dublin operation which employs around 200 people in commercial banking as well as broking is thought to be profitable and may not be affected.
Mr Groenink might also wish to bring one or more non-Dutch members for the first time on to its eight-strong management board, said one person close to the company. Last year Mr Kalff initiated a shift to what he called value-based management. He targeted asset management, private banking and corporate finance as areas for international expansion.
The shift involved curbing large-scale loans to wholesale customers who were unlikely to generate other, more lucrative business. As a result, the bank turned away business that he said would have added several hundreds of millions of euros to its balance sheet, which grew by €25.8 billion (£20.32 billion) last year.
In the last few months, ABNAmro has also tackled costs at its main retail operation, deciding to close one in six of its branches in the Netherlands. The bank has meanwhile committed €1.8 billion over the next two to five years to build a presence in electronic commerce.
The online activities are intended to form an integral part of its existing operations. That is in contrast to some other large European banks, which have set up separate units for Internet banking.
In some national markets, the Internet business is seen by ABNAmro as a cheaper and quicker way to win customers than taking over a banking group in that country.
The Dutch bank has struggled to win a retail foothold through acquisitions or alliances in Europe. A merger with a domestic rival such as ING is thought unlikely.
Although ABN-Amro regards the geographical spread of its corporate and investment banking network as adequate, the group is seeking to build that in size. Mr Groenink said this month he wanted to recruit as many as 500 extra professionals to work on originating deals in Europe.
The bank is grappling to adjust its internal organisation to the accelerating change taking place in its markets. This evening's gathering brings together the top layer of the group's operational executives for about the third time in the last six months, roughly double the previous frequency at which they have met.
