Abu Dhabi Islamic Bank (ADIB) is reportedly considering axing jobs and closing branches as part of a series of cost-cutting measures to save around AED 500 million ($136m).
The state-controlled lender which has operations in Egypt, Iraq, Saudi Arabia and the UK is considering closing some local and international branches.
The cutbacks come as ADIB announced a growth of 4% in net profit for 2019 to AED2.6 billion while group net revenues increased by 2.5% to AED5.9 billion. "At a time when competition in the banking industry has intensified, we were able to grow our revenues reflecting successful business strategies and product propositions," ADIB's management said in a statement.
Net profit margin was 4.25%, despite lower rates in the market, helped by the positive impact of the low cost of funds, ADIB said.
The UAE economy is coming under pressure from regional geopolitical tensions and weak domestic demand, while business conditions worsened for the first time in over a decade. "Despite challenges in the macroeconomic environment, the prospects for the UAE in 2020 are encouraging as the Government's stimulus plans and Expo 2020 are expected to boost key economic sectors," the bank said, while adding that ADIB will continue investing in growth areas.
ADIB joins competitors such as First Abu Dhabi Bank (FAB) and Emirates NBD in cutting jobs.