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04 December 2023

Lloyds TSB UAE retains all staff despite slowdown

Lloyds TSB UAE retains all staff despite slowdown. (GETTY IMAGES)

By Shveta Pathak

Despite the global downturn Lloyds TSB UAE has been able to retain its 100 per cent staff, according to the bank's managing director for the region.

"We have not laid off a single staff last year on account of recession or slow down in business," Richard Musty Managing Director for Middle East told Emirates Business recently.

To a question whether there will be any layoffs during the current year, Musty said: "Our staff strength is the same. We had no layoffs so far. No people were made redundant. We take a long-term view for our staff and customers," he said.

The financial crisis that gripped the whole world has seen several UAE banks lay off their staff. According to a Central Bank statistics, about 2,300 bank direct employees have lost jobs since the recession hit the country during the last quarter of 2008.

According to sources close to banks, the biggest redundancy was witnessed among marketing staff, who were mostly outsourced. "The number of marketing staff who lost jobs will be more than the job losses among direct employees who are on the rolls of the banks," they said.

Sources said banks are seriously working out other cost-cutting measures in order to equip themselves for an extended recession period.

Musty said he expects a modest growth across the banking sector in the region in 2010 in the backdrop of stable oil prices and strong signs of economic recovery.

"I think 2010 and 2011 will be static years, maybe with modest growth for banks. I think we will have a situation where oil prices would be similar to the current levels. The economy would not see double-digit growth that was seen in the past. In the long term, there will be growth," he said.

After seeing fluctuations in the deposit base in 2009, banks in the UAE have been recording marginal growth in deposits and during the last few months.

Deposits of the more than 50 banks crossed the Dh1 trillion-mark in November whereas the loans and advances were at Dh1,027bn in May 2009 itself.

Asset base of the UAE banks also grew to Dh1.55trn as of end November.


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