Dutch private bank Van Lanschot is to cut
staff levels 10 to 15% over the next three years and close seven of
its 28 offices in the Netherlands. The cost-cutting drive aims to
save €60m ($79m) annually by 2015.
The redundancies are likely to come from its
back office where it plans to reduce headcount in service centres
by approximately 40% in 2012-2015.
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Van Lanschot chairman Floris Deckers said the
restructuring was due to tough market conditions.
Market ‘permanently
altered’
“The market is not only turbulent, but has
also permanently altered,” Deckers said.
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By GlobalData“The earnings model of the financial sector is
under pressure. The continuing difficult market conditions have had
an adverse impact on the bank’s profitability.
“The economic outlook and sector developments
are grounds for Van Lanschot to adapt its organisation in response
to these changing circumstances: it must become more effective and
efficient.”
€30m investment in staff and systems,
alongside cuts
Van Lanschot added that, as part of the
restructure, the bank would invest €30m over the next three years
in the quality of the organisation, in particular its employees and
systems.
The relationship model of the private bank
will be extended and intensified, it added.
Among Van Lanschot’s financial targets, the bank aims to
increase assets under management to €50bn by year-end 2015, from
its current level of €36.3bn.
