The expected losses are about double the 1000 cuts which analysts estimated in December, before the tie-up the three banks employed about 8,500 people.
Thursday 04, July 2019
Abu Dhabi Commercial Bank (ADCB), which completed a three-way merger earlier this year, may cut about 2,000 jobs as the lenders integrate operations, reported Bloomberg.
The state-controlled lender started the job cuts once it began combining with Union National Bank and Al Hilal Bank and it will complete the process in the next few months.
ADCB Group said that the merger, which created the Gulf region’s fifth-biggest lender with about $114 billion in assets, is expected to deliver cost savings of about $167 million annually.
The Government of Abu Dhabi has stepped up efforts to create leaner and more competitive financial institutions. The merger follows a tie-up between the emirate’s two biggest banks and the combination of sovereign wealth funds.
The job cuts are likely to weigh on the second-biggest Arab economy that is already being battered by falling home prices and slow growth. According to the International Monetary Fund although economic activity is expected to accelerate to 2.8 per cent this year, it’s still well below the average in the 15 years to 2015.