First Abu Dhabi Bank has laid off 20 bankers in its global markets business as the ender cuts duplicate posts in the wake of the merger between National Bank of Abu Dhabi (NBAD) and FGB.
The news, first reported by Reuters News Agency, was confirmed yesterday by banking sources. bank spokesman declined to comment. While the cuts come as part of the restructuring, they are not unique to the lender. A number of other banks such as RAKBank have also cut jobs as a result of the economic slowdown.
The merger, which was approved by both banks’ shareholders on December 7 and completed at the beginning of this month, was done in part to cut down on costs by removing duplicate posts and sharing resources.
Even though NBAD, the biggest bank by assets in the UAE, had made headway in building its consumer banking business, it will get a boost from joining forces with FGB, which has more loans to individuals on its books.
Retail lending accounts for about 40 per cent of FGB’s total lending book, while NBAD’s consumer lending portfolio makes up just 17 per cent of its outstanding loans.
Investors have backed the combination, especially as NBAD is considered one of the safest banks in the world; its high credit ratings will allow it to borrow at low cost on behalf of the new entity.
mkassem@thenational.ae
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