Abu Dhabi Islamic Bank to Cut Jobs, Shut Branches to Save Costs
Abu Dhabi Islamic Bank PJSC seeking to save about $136 million by cutting jobs and closing branches.
(Bloomberg) -- Abu Dhabi Islamic Bank PJSC is seeking to save about 500 million dirhams ($136 million) by cutting jobs and closing branches as sluggish economic growth weighs on the finance industry.
The state-controlled lender plans to shut some local and international branches, according to people with knowledge of the matter who asked not to be identified because the matter is private. The bank has operations in Egypt, Iraq, Saudi Arabia and the U.K.
A spokesman for the bank declined to comment.
ADIB, as the bank is known, on Wednesday posted a 4% increase in profit, beating estimates, helped by higher revenue across its core businesses. Revenue growth has been complemented by “our discipline in managing costs which saw the cost to income ratio decrease by almost 1% for the year,” Group Chief Executive Officer Mazin Manna said in a statement.
ADIB joins competitors such as First Abu Dhabi Bank PJSC and Emirates NBD PJSC in cutting jobs. The U.A.E. economy is coming under pressure from regional geopolitical tensions and weak domestic demand. In Dubai, business growth stalled, while jobs disappeared at the fastest pace in at least a decade in the latest sign of strain on the Middle East’s commercial hub.
Consolidation between some of the country’s biggest lenders has also led to thousands of job losses. Abu Dhabi, home to 6% of global oil reserves, has stepped up efforts to create leaner and more competitive financial institutions.
To contact the reporters on this story: Zainab Fattah in Dubai at zfattah@bloomberg.net;Archana Narayanan in Dubai at anarayanan16@bloomberg.net
To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Vernon Wessels
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