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Wed 12 Feb 2020 05:41 PM

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Abu Dhabi bank said to seek $136m savings by cutting jobs

Sources say Abu Dhabi Islamic Bank also plans to shut some local and international branches

Abu Dhabi bank said to seek $136m savings by cutting jobs

Abu Dhabi Islamic Bank is seeking to save about AED500 million ($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 UK.

A spokesman for the bank declined to comment.

The cutbacks come as ADIB announced a growth of 4 percent in net profit for 2019 to AED2.6 billion while group net revenues increased by 2.5 percent to AED5.9 billion.

ADIB joins competitors such as First Abu Dhabi Bank and Emirates NBD in cutting jobs. The UAE 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 percent of global oil reserves, has stepped up efforts to create leaner and more competitive financial institutions.

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