U.A.E.’s RAKBank Says Expatriate Staff to Account for Job Lossesby and
National Bank of Ras Al-Khaimah PSC said expatriate staff will account for the as many as 250 job losses that the United Arab Emirates lender plans as it adjusts to slowing growth.
Headcount had grown by about 600 in the past three years, “on the back of a significant increase in new business volume, which has now settled at more sustainable levels,” Chief Executive Officer Peter England said in a statement to Abu Dhabi’s stock market Wednesday.
Banks in the U.A.E. are prepared for deteriorating conditions 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 Jan. 11. 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, as the Ras Al-Khaimah-based lender is known, said there’s no change to its business strategy. It recently re-entered wholesale banking and “has been significantly increasing its product offerings and headcount in this segment, which is set to continue throughout 2016.”