ABN Amro beats forecasts with a 19 per cent rise in Q3 profits, but amid continuing pressure on the sector, is to shed an additional 1,500 jobs. And, as Kate King reports, EU regulators are reportedly set to fine HSBC, JP Morgan and Credit Agricole for rigging financial benchmarks.
Still trying to negotiate its way out of choppy waters Dutch banking group ABN AMRO announcing it's shedding another 1,500 jobs. That's on top of more than a thousand planned cuts revealed in September. SOUNDBITE (English) CHIEF INVESTMENT OFFICER, CCLA, JASON BEVAN SAYING: "If one lifts the lid on the details it's clear that costs were rising rather faster than revenues and that sends an amber warning light to the bank that it needs to step on the gas in terms of constraining costs to build a sustainable profitable long term business proposition." The job losses were announced alongside the banks better-than-expected third quarter earnings. Up 19 percent in underlying profit to 652 million dollars, helped by a growing Dutch economy. The company says the new redundancies will save as much as 428 million dollars. Revenues remain under pressure across most of the banking sector. Wednesday providing yet another potential hiccup- with reports EU regulators are set to fine HSBC, JPMorgan and Credit Agricole for rigging financial benchmarks linked to the euro. SOUNDBITE (English) CHIEF INVESTMENT OFFICER, CCLA, JASON BEVAN SAYING: "Interestingly the fines that are being considered are hotly contested by the banks who argue that they are not appropriate and not due. They did have an opportunity to treat with the authorities earlier in exchange for a reduced fine and they said no we are not going to go for a reduced fine because we are because we simply don't think this is right or appropriate so I suspect this has further to run before we end up with a final outcome. The charges were first levied back in May 2014, and any decision could still be delayed. But IF or WHEN it wants to, the EU competition enforcer can levy fines up to 10 percent of a company's global turnover.