Dubai's Emirates NBD to lay off 800 staff

Emirates NBD, Dubai's largest bank, said on Tuesday it is laying off around 800 people as the bank seeks to "right size" to meet its anticipated future business needs.

An Emirates NBD spokesperson said the recent developments have had a significant impact on the economy, the financial services sector and the lender itself, resulting in changes to its operations and staffing requirements.

"Unfortunately, this has meant letting go of some of our colleagues as we right size to meet our anticipated future business needs, especially in the light of the economic forecasts that point towards challenging times ahead," he said.

"This decision was not taken lightly, and we have done our very best to treat them fairly, with respect, and set them up for success outside Emirates NBD. We remain optimistic that, as the UAE economy opens up, Emirates NBD will have the right structure to continue to support customers and help businesses grow and prosper," said the spokesperson.

Emirates NBD capped off a landmark year of achievements in 2019 with a record 44 per cent jump to Dh14.5 billion in net profit. The bank recorded a total income of Dh22.4 billion, up 29 per cent year-on-year due to loan growth and higher fee income while its net profit excluding the impact of the Network International transaction rose one per cent.

In the first quarter 2020, Emirates NBD's net profit declined 24 per cent year-on-year due to higher provisions it took in anticipation of the impact of the coronavirus outbreak on credit conditions. The bank posted a net profit of Dh2.08 billion in the quarter, down from Dh2.74 billion in the same period a year earlier. On a quarterly basis, however, the lender's net profit improved by three per cent.

Driven by an increase in the overall loan book and inorganic growth, the top 10 listed banks of the UAE have reported an average 13.9 per cent growth in net profit last year, the highest among GCC countries.

"The UAE banking sector continues to show strength and resilience as top banks reported the region's highest growth in their asset base of 19.5 per cent with Emirates NBD recording the highest net profit across the GCC at $3.94 billion, and the highest return on equity at 21.8 per cent, KPMG said in a report.

issacjohn@khaleejtimes.com

Issac John

issacjohn@khaleejtimes.com