First Community Bank says it plans to send home undiclosed number of staff in two weeks
First Community Bank, the small-sized Shariahcompliant lender, plans to lay off an undisclosed number of staff in two weeks, its CEO Fazal Saib said in a leaked internal memo last Friday. The bank joins a growing number of lenders who have resorted to job cuts to manage costs amid dwindling profit margins following the enforcement of Banking (Amendment) Act 2016 in September, which has capped interest at 14 per cent. Others are Equity which plans to retrench at least 400 this year, Sidian Bank (108) and Family Bank which is yet to disclose the number of employees it is retrenching. “In the last 18 months, we have seen many changes in the banking industry. Most recently the Banking (amendment) Act was signed into law,” the memo reads in part. Saibsaid the bank has hired undisclosed external consultant to “review and identify areas where staff reductions can be made without hurting the bank’s operations” following three months of consultations between top management and the board.
First Community Bank chief executive Fazal Saib