Wednesday, 17 June 2015 - 09:19
CEO: ABN Amro ready for an IPO
ABN Amro is ready for an IPO, CEO Gerrit Zalm said to the Tweede Kamer, lower house of parliament, on Tuesday night. According to him, the IPO is a "logical development" - the bank is financially in order and moral lessons have been learned. "We are now a new, and in my opinion, a very solid bank. Of course we are also grateful for the support we received from the government and society, the taxpayers, to get ABN Amro this far again." Zalm said, BNR reports. According to Zalm, ABN Amro complies with all capital requirements for an IPO. He stressed that the bank now has a "moderate risk profile" as part of "our long-term strategy", which should make the bank interesting for investors. The government rescued ABN Amro in 2008. The nationalization was not intended to be permanent. Zalm also faced some critical questions in the Kamer. Regarding the reversal of the directors' salary increase, he said that it won't happen again. "But maybe it is an idea if the Minister of Finance retains a share?" Another critical question regarded the construction to protect the bank from hostile takeovers, like what happened in 2007 when ABN Amro was acquired by three banks and then divided into pieces. It is feared that this construction will make US investors reluctant to invest in the bank and reduce the value of the bank. "So far I have not heard any warning that this would have a value depressing effect." The Tweede Kamer wil have a debate with Minister Jeroen Dijsselbloem of Finance on ABN Amro's IPO next week.