National Bank of Ras Al-Khaimah PSC is cutting about 250 staff as the United Arab Emirates lender adjusts to slowing growth in the second-biggest Arab economy after oil’s plunge.
RAKBank, as the lender is known, "revisited the organization structure of select departments and made changes where necessary to improve synergy and efficiency," a bank spokeswoman said in an e-mailed response to questions on Sunday.
Banks in the U.A.E. are prepared for deteriorating conditions into next year as oil prices remain lower for longer, leading to a decline in government spending, slower economic growth and falling asset quality, Standard & Poor’s said last week. Loan loss provisions at Abu Dhabi-based Union National Bank PJSC jumped 57 percent in the third quarter and United Arab Bank PJSC swung to a loss from a year-earlier profit in the period.
RAKBank is one of several in the U.A.E. that have cuts jobs amid falling oil and property prices. HSBC Holdings Plc cut about 150 employees at its retail and commercial banking operations in the U.A.E., a person familiar with the matter said in November, while Standard Chartered Plc also cut several positions in the country as part of a global restructuring.