The Dutch bank has highlighted the importance of its Asian business as it embarks on a cost-cutting mission.

ABN AMRO remains committed to its Asian business despite making job cuts in the region amid market uncertainty and higher regulatory costs, the bank told this publication.

While ABN AMRO’s client assets under management in Asia has declined marginally since the beginning of 2016 from €15.94 billion ($17.9 billion) to €15.42 billion as at the end of June, its share of the bank’s global asset pool has actually risen from 8 per cent to 8.34 per cent. The bank’s total assets under management dipped 3 per cent to €192.8 billion during this period.

“The private banking business landscape has been challenging over the last 15 months with income and revenues impacted over this long drawn period of uncertainty and increased regulatory costs,” Hans Hanegraaf, country executive of ABN AMRO Singapore and chief executive of private banking in Asia and the Middle East, told this publication.

“We are no different [to other private banking institutions] and we have had to take stock and thus recently conducted a performance and business review in line with our aim to remain sustainably profitable and to continue to fund future growth and our ongoing investment in the right talent. This has resulted in us having to part ways with some staff post business and performance review. We recently have and will continue to invest in the right talent and fit for our focus business segments in Greater China and we remain committed to our clients and business in Asia.”

ABN AMRO recently revealed that its private banking profit fell 40 per cent year-on-year to €96 million in the first half of 2016. The bank’s net profit of €866 million was down 24 per cent from a year earlier. Its cost/income ratio rose to 61.8 per cent, versus 57.4 per cent a year earlier. 

The cuts to its Asian workforce, details of which were not disclosed, come as part of the bank’s efforts to lower its cost/income ratio to 56-60 per cent by 2017, with €200 million of cost savings planned in support and control activities.

Last month, Donny Chong returned to ABN AMRO Private Banking as market manager for Greater China.