February 23, 2001
Article

Citibank to Acquire EAB; More Woes for EAB Parent ABN Amro

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SWALLOWED WHOLE: Citibank announced its intention to acquire
Long Island-based European American Bank from ABN Amro, the
Netherlands’ largest bank, for $1.6 billion plus the assumption
of $350 million in preferred stock. EAB is a state-chartered
bank with $11.5 billion in deposits, with $15.4 billion in assets
and 97 branches; the merger is expected to make Citibank the
leading holder of deposits on Long Island, one of the greater
metro NYC area’s most active in consumer finance.

In continued efforts to acquire assets and accounts, it is
expected that the acquisition will help Citibank migrate assets
to its online offerings, although it has not been made clear how
the acquisition will affect the two’s online presences.
Separately, ABN Amro plans to cut another 3,500 jobs on top of
2,500 previously announced over the next four years, in an effort
to reduce costs; the bank reported that its net profit sank 3
percent to 2.5 billion euros ($2.25 billion) in 2000 from 2.57
billion euros in 1999.


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