SNS Securities Plans to Cut Jobs, End Proprietary Trading
SNS Reaal NV (SR), a Dutch lender and insurer, plans to cut jobs at its securities unit, which is ceasing proprietary trading as market conditions deteriorate.
“In light of the worsening conditions in the financial world, we have decided to take action,” said Robert Hogenhuis, managing director responsible for fixed income at Amsterdam- based SNS Securities NV. The brokerage will shut part of its equity trading business and cut 10 of 150 jobs, he said.
SNS Reaal, which is based in Utrecht, must bolster its capital to satisfy European regulators as the sovereign-debt crisis spreads to the region’s larger economies and roils markets. The benchmark Stoxx Europe 600 Index has dropped 15 percent this year, while the Dutch benchmark AEX-Index (AEX) has retreated 17 percent.
The job cuts include one equity analyst and seven traders, while two private bankers will leave via attrition, Hogenhuis said. Other parts of the business, including fixed income, aren’t affected, he said.
SNS Reaal’s banking unit is the smallest of four Dutch lenders that face additional capital requirements after being designated as “systemically important” by the nation’s central bank. The lender said last week that it must raise 159 million euros ($207 million) to meet the mid-2012 European Banking Authority requirement for its core Tier 1 capital ratio, a measure of financial strength.
The lender has already raised about half that amount and said last week that it had a core Tier 1 ratio of 9 percent at the end of November, up from 8.6 percent at the end of September.
To contact the reporter on this story: Maud van Gaal in Amsterdam at email@example.com
To contact the editor responsible for this story: Frank Connelly at firstname.lastname@example.org