Some two years after Royal Bank of Scotland (RBS) all but closed down its operations in Amsterdam, the bank plans to beef up what’s left into a post-Brexit European Union trading hub.
Speaking at the presentation of RBS’ second-quarter results last week, CEO Ross McEwan said the bank was seeking to build up its Amsterdam unit so that its trading division NatWest Markets can continue operating after Brexit.
RBS has a banking licence in the Netherlands, a legacy from its €72 bn abortive takeover of ABN Amro 10 years ago together with Spanish bank Santander and Belgium’s Fortis Bank. Following record losses after the takeover which resulted in ABN Amro being nationalised, the UK bank virtually closed down its Dutch operations in 2015, leading to the loss of 600 of the total 650 jobs. The Dutch unit has remained active since then in the areas of risk management and currency trading.
State-owned RBS says it is now in advanced talks with the Dutch central bank to set up a modest operation in Amsterdam which would deliver 150 jobs. The Dutch capital was a ‘logical choice’ since the bank already has a presence there and the requisite trading licences, CFO Ewen Stevenson told NBC News.
More Brexit refugees
RBS is not the only institution to pick Amsterdam as an EU base following Brexit. US trading houses Tradeweb Markets, Radix Trading and Hard Eight Trading have also announced plans to set up an EU base in Amsterdam in light of the pending Brexit. Cheaper operating costs, experienced regulatory bodies and sound infrastructure were cited as some of the factors in favour of the Dutch capital.
At end-June some 12 companies had confirmed they were planning a move to the Dutch capital, according to local council figures. In addition, inquiries have been made by some 50 companies about setting up operations in the Amterdam area.
Late last year, Japan’s Mitsubishi UFJ Financial Group (MUFG) said it was considering upgrading its Amsterdam office to European headquarters status alongside London, a move which could possibly generate ‘hundreds’ of jobs. Mizuho Financial was also said to be beefing up its Amsterdam office.
