Rabobank's profits slump 20% last year

Thursday 28 February 2013 12.06
Rabobank set to cut 3,000 jobs as profits slump
Rabobank set to cut 3,000 jobs as profits slump

Rabobank, the Dutch co-operative bank, has said it plans to cut 3,000 jobs in the coming two years as profits fell 20% in 2012.

Full-year net profit was €2.11 billion, down from €2.63 billion in 2011.

This was mostly because of falls in the value of its investments in the Netherlands, where it is the largest mortgage broker.

Rabobank said the job cuts, which represent around 5% of its work force, were needed to compensate for increased spending on its Internet and mobile phone banking platforms.

Jobs lost will mostly be at the bank's Dutch retail operations.

The company added - without admitting it did anything wrong - that it expects to negotiate settlements for its alleged role in the Libor interest rate-fixing scandal.