UAE’s First Gulf Bank lays off nearly 100 staff amid cost cuts

The Abu-Dhabi based First Gulf Bank (FGB), the United Arab Emirates’ third largest lender by assets, laid off nearly 100 staff last week from several departments as part of new cost-cutting measures.

“FGB has released a number of staff as a result of efficiency measures that have streamlined and reduced roles across the operation,” the bank said in an emailed statement to Argaam. “This is in line with FGB’s robust approach to cost and resource management which remains a key driver of FGB’s successful financial performance,” it added.

A Reuters report citing unnamed and informed sources said FGB’s corporate and investment banking divisions were affected.

The move comes amid declining oil prices, lower public spending and slower economic growth in the UAE. It also comes a day after HSBC announced layoffs at its UAE offices as part of a global restructuring plan.

Earlier this month, Standard Chartered also cut a number of management positions in the country, according to media reports.

FGB, which is 65 percent-owned by Abu Dhabi’s ruling family, saw its third-quarter net profit fall 0.4 percent year-on-year to AED 1.42 billion as a drop in loan income led to missed analyst expectations.