ABN Amro to buy NIBC Bank from Blackstone for 960 million euros

The deal will cut the Dutch bank’s CET1 capital ratio by about 70 basis points at closing

ABN Amro Bank said it will acquire NIBC Bank from Blackstone for about 960 million euros (S$1.45 billion) to expand in retail banking in the Netherlands.

The price is subject to final adjustments, and the deal will cut ABN Amro’s CET1 capital ratio by about 70 basis points at closing, the lender said in a statement in Amsterdam on Wednesday (Nov 12).

ABN Amro also reported a lower third-quarter profit than the year before, though it was ahead of analyst estimates.

The Dutch bank has sought to increase and rejuvenate its client base, and recently acquired a wealth manager in Germany.

The NIBC deal is the first to be initiated under chief executive officer of ABN Amro, Marguerite Berard, who will provide an update on the bank’s strategy later this month.

Net income at the Amsterdam-headquartered lender fell 11 per cent to 617 million euros in the three months through September, the bank said in a statement on Wednesday.

That compares with analyst expectations of 591.2 million euros on average in a Bloomberg survey.

Bailed out by the Dutch state after the 2008 financial crisis, ABN Amro spent several years retrenching, and ultimately, pulled back to North-west Europe. BLOOMBERG

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