State-owned Volksbank is going to scrap 700 jobs and three separate brand names to save €70 million a year. The aim of the reorganization is to prepare the bank, which was nationalised in 2013, for an IPO or takeover.

Volksbank, which currently operates SNS, Regiobank, BLG Wonen and ASN Bank, also needs to invest in counteracting money laundering and in its IT systems, the company said in a press statement.

“We deliberately choose to share our plans now, even though not all details have been worked out yet,” said chief executive Roland Boekhout. “Our employees, customers and partners deserve clarity about the steps we are going to take to become a stronger, future-proof bank that builds on a broad social foundation.”

Work on combining the four brands will start in 2025 and is expected to be completed within 3 years. The company plans to announce the remaining brand name later this year.

The number of SNS Shops and RegioBank branches will also be reduced, but it is not clear how many as yet.

The state shareholdings agency NLFI recommended the sale of Volksbank via either an IPO or a takeover in June this year.

The Dutch state owns 100% of Volksbank after nationalising its predecessor SNS Reaal some 11 years ago when it ran into trouble with its property portfolio.

Volksbank, the fourth biggest Dutch financial services group, booked net profit of €431 million last year, 126% up on 2022. Earnings were driven by a 53% increase in net interest income, while higher charges for banking services added a further 25%, the bank said in February.