Monday, May 4, 2009
DBS Bank cut 900 banking jobs
Singapore's DBS Group, Southeast Asia's biggest bank by assets is cutting 900 staff to trim costs amid the global credit crisis, after recording a slump in third quarter net profit, AFP quoted the bank as saying Friday.
Chief executive Richard Stanley said most of the cuts, accounting for six percent of the group's workforce, will be made by month's end in its Singapore and Hong Kong offices.
The job reductions were announced at a town hall-style meeting with staff on Friday.
"To be a streamlined organisation, I believe we must run a tighter ship... This is a painful decision for DBS and for me personally," Stanley told a news conference after the meeting.
"We have been vigilant on costs but as the economy enters a more difficult and uncertain phase, many financial institutions around the world and in Asia have made head count reductions," he added.
"To be more productive and efficient, we will restructure and streamline the organisation. Regrettably, this has resulted in the need to reduce our workforce."
DBS is the first major Singaporean firm to announce job cuts of such magnitude, and one analyst said it was a sign of more layoffs after the economy slipped into recession in the third quarter.
"Being the biggest local boy, it will send a very strong message to Singaporeans that what the government has been warning about (job losses) is happening already," CIMB-GK Research economist Song Seng Wun told AFP.
"There will be more retrenchments across all industries next year. Our view is that no industry will be spared."
Stanley, who was named to head DBS in February, said however that the cuts were not related to losses from its issuance of financial products linked to the collapsed US investment bank Lehman Brothers.
They also did not reflect the bank's financial position.
"DBS remains strong and sound," he said. "The tough measures we are taking now will enable us to confidently ride out this storm and emerge stronger when this global economic crisis is over."
Earlier Friday DBS said net profit in the three months to September fell 38 percent as market-related income took a hit from the global financial crisis and bigger provisions.
Third quarter net profit totalled 379 million Singapore dollars ($256 million), down from $610 million in the same period last year, it said in a statement.
Net interest income in the September quarter grew two percent to $1.07 billion from last year but net fee and commission revenues dropped 22 percent to $316 million.
Other non-interest income plunged 87 percent on the year to 11 million dollars.
The bank said it set aside $129 million in provisions, compared with just 10 million dollars a year ago, partly to cover its collateralised debt obligations, securities backed by a range of assets including risky home mortgages.
It also set aside $70 million as compensation to certain customers who bought its now worthless Lehman Brothers-linked products.
DBS was the last of three local banks to report earnings for the September quarter.
Oversea-Chinese Banking Corp said earlier this week third quarter net profit fell 13 percent while United Overseas Bank reported last week a 5.1 percent drop in profit for the same period.
Chief executive Richard Stanley said most of the cuts, accounting for six percent of the group's workforce, will be made by month's end in its Singapore and Hong Kong offices.
The job reductions were announced at a town hall-style meeting with staff on Friday.
"To be a streamlined organisation, I believe we must run a tighter ship... This is a painful decision for DBS and for me personally," Stanley told a news conference after the meeting.
"We have been vigilant on costs but as the economy enters a more difficult and uncertain phase, many financial institutions around the world and in Asia have made head count reductions," he added.
"To be more productive and efficient, we will restructure and streamline the organisation. Regrettably, this has resulted in the need to reduce our workforce."
DBS is the first major Singaporean firm to announce job cuts of such magnitude, and one analyst said it was a sign of more layoffs after the economy slipped into recession in the third quarter.
"Being the biggest local boy, it will send a very strong message to Singaporeans that what the government has been warning about (job losses) is happening already," CIMB-GK Research economist Song Seng Wun told AFP.
"There will be more retrenchments across all industries next year. Our view is that no industry will be spared."
Stanley, who was named to head DBS in February, said however that the cuts were not related to losses from its issuance of financial products linked to the collapsed US investment bank Lehman Brothers.
They also did not reflect the bank's financial position.
"DBS remains strong and sound," he said. "The tough measures we are taking now will enable us to confidently ride out this storm and emerge stronger when this global economic crisis is over."
Earlier Friday DBS said net profit in the three months to September fell 38 percent as market-related income took a hit from the global financial crisis and bigger provisions.
Third quarter net profit totalled 379 million Singapore dollars ($256 million), down from $610 million in the same period last year, it said in a statement.
Net interest income in the September quarter grew two percent to $1.07 billion from last year but net fee and commission revenues dropped 22 percent to $316 million.
Other non-interest income plunged 87 percent on the year to 11 million dollars.
The bank said it set aside $129 million in provisions, compared with just 10 million dollars a year ago, partly to cover its collateralised debt obligations, securities backed by a range of assets including risky home mortgages.
It also set aside $70 million as compensation to certain customers who bought its now worthless Lehman Brothers-linked products.
DBS was the last of three local banks to report earnings for the September quarter.
Oversea-Chinese Banking Corp said earlier this week third quarter net profit fell 13 percent while United Overseas Bank reported last week a 5.1 percent drop in profit for the same period.
Banking Giant Barclays cuts 2100 accounting related jobs
BRITISH banking giant Barclays said on Tuesday that it will cut 2,100 jobs in its investment banking and wealth management units, with some positions in Singapore at risk. Barclays’ operations in Singapore include Barclays Capital, Barclays Wealth Management and Barclays Global Investors, employing more than 2,500 bankers and back-end staff in total.
A Barclays spokesman in Singapore did not elaborate on possible job cuts here but The Straits Times understands that some staff were told on Wednesday morning that they are being laid off.
Bloomberg News reported on Tuesday that Barclays is making deep cuts across all its units.
It said about 1,300 jobs will go at Barclays Capital, 6 per cent of the investment banking unit’s total headcount, while 330 people will go at Barclays Global Investors, 8 per cent of that division. The remainder will be cut from Barclays’ private bank while the bank said last week that 408 information technology jobs will be axed in Britain.
Reuters reported that Barclays Capital employs about 20,500 people, Barclays Wealth Management about 8,000 and Barclays Global Investors about 3,800. A Barclays spokesman told The Straits Times on Wednesday: ‘We can confirm that we have begun a process to reduce headcount across some parts of investment banking and investment management to ensure that we are appropriately sized, given market conditions.’
The cuts follow more than 3,000 job cuts Barclays instigated last year when it acquired the trading and investment banking units of the now-bankrupt United States investment bank Lehman Brothers for US$1.75 billion (S$2.6 billion).
In November last year, the bank raised 7 billion pounds (S$15 billion), mainly from the Middle East, to shore up capital reserves depleted by writedowns. Analysts expect such downsizing to continue at financial giants like Citigroup, Goldman Sachs, Morgan Stanley, Credit Suisse and UBS, which all have investment banking units that have taken a hammering over the past 12 months.
A Barclays spokesman in Singapore did not elaborate on possible job cuts here but The Straits Times understands that some staff were told on Wednesday morning that they are being laid off.
Bloomberg News reported on Tuesday that Barclays is making deep cuts across all its units.
It said about 1,300 jobs will go at Barclays Capital, 6 per cent of the investment banking unit’s total headcount, while 330 people will go at Barclays Global Investors, 8 per cent of that division. The remainder will be cut from Barclays’ private bank while the bank said last week that 408 information technology jobs will be axed in Britain.
Reuters reported that Barclays Capital employs about 20,500 people, Barclays Wealth Management about 8,000 and Barclays Global Investors about 3,800. A Barclays spokesman told The Straits Times on Wednesday: ‘We can confirm that we have begun a process to reduce headcount across some parts of investment banking and investment management to ensure that we are appropriately sized, given market conditions.’
The cuts follow more than 3,000 job cuts Barclays instigated last year when it acquired the trading and investment banking units of the now-bankrupt United States investment bank Lehman Brothers for US$1.75 billion (S$2.6 billion).
In November last year, the bank raised 7 billion pounds (S$15 billion), mainly from the Middle East, to shore up capital reserves depleted by writedowns. Analysts expect such downsizing to continue at financial giants like Citigroup, Goldman Sachs, Morgan Stanley, Credit Suisse and UBS, which all have investment banking units that have taken a hammering over the past 12 months.
Citibank Singapore layoff many 250 accounting jobs
ABOUT 200 to 250 jobs are set to be shed from the Singapore unit of United States banking behemoth Citigroup, a source has told The Straits Times, as part of the worldwide loss of 52,000 jobs announced on Monday.
A handful of staff, mainly relationship managers, have been notified that they are being let go, other sources say.
Given the woes of the US parent Citigroup, there has also been talk that Citi Singapore is starting to tighten credit. The US banking giant is a major player here in credit cards, car loans and other forms of secured and unsecured credit. Any major tightening of this sort of credit would have widespread implications for consumers and businesses here.
But when contacted yesterday, Citi Singapore said that it does not comment on market speculation.
In terms of job losses, The Straits Times has learnt of only a handful of staff, mainly relationship managers at the Asia Pacific unit of Citi Global Wealth Management, who have been officially notified that they have been let go. People familiar with the matter have confirmed that the bank - which had earlier said that the cuts would be 'modest' - has started notifying affected staff here.
Affected staff at Citi's Global Wealth Management unit here were informed on Wednesday and yesterday. Staff there who had not been told by last night should be safe for now, sources say. However, sources also say not all Citi Singapore staff earmarked for retrenchment have been notified.
And not all will be told to leave immediately. 'It will not be a situation where they will be told to pack up immediately and have to leave unceremoniously,' said another source.
Over 9,000 people work for Citi Singapore, which remains one of the largest employers in the finance sector. If the 200 to 250 layoffs at Citi Singapore proves to be correct, that is just 3 per cent of its total headcount here.
The Straits Times understands the bank has kept the Manpower Ministry, the Monetary Authority of Singapore and relevant staff union bodies in the loop over its plans to cut jobs.
A handful of staff, mainly relationship managers, have been notified that they are being let go, other sources say.
Given the woes of the US parent Citigroup, there has also been talk that Citi Singapore is starting to tighten credit. The US banking giant is a major player here in credit cards, car loans and other forms of secured and unsecured credit. Any major tightening of this sort of credit would have widespread implications for consumers and businesses here.
But when contacted yesterday, Citi Singapore said that it does not comment on market speculation.
In terms of job losses, The Straits Times has learnt of only a handful of staff, mainly relationship managers at the Asia Pacific unit of Citi Global Wealth Management, who have been officially notified that they have been let go. People familiar with the matter have confirmed that the bank - which had earlier said that the cuts would be 'modest' - has started notifying affected staff here.
Affected staff at Citi's Global Wealth Management unit here were informed on Wednesday and yesterday. Staff there who had not been told by last night should be safe for now, sources say. However, sources also say not all Citi Singapore staff earmarked for retrenchment have been notified.
And not all will be told to leave immediately. 'It will not be a situation where they will be told to pack up immediately and have to leave unceremoniously,' said another source.
Over 9,000 people work for Citi Singapore, which remains one of the largest employers in the finance sector. If the 200 to 250 layoffs at Citi Singapore proves to be correct, that is just 3 per cent of its total headcount here.
The Straits Times understands the bank has kept the Manpower Ministry, the Monetary Authority of Singapore and relevant staff union bodies in the loop over its plans to cut jobs.
KPMG Singapore sacks 300 accountants
SINGAPORE: Accounting firm KPMG LLP (Singapore) will layoff about 300 accountants begin February.
KPMG said staff wages form the biggest component of costs outside of office rentals. However, it does not expect any retrenchments after the implementation of a series of measures to counter the impact of the recession.
It added that efforts to control business costs for non-essential operations have already been in place since the fourth quarter of 2008.
Channel NewsAsia understands that KPMG is the first of the “Big Four” accounting firms here to cut wages in the current economic downturn.
The other top accounting firms are Ernst & Young, PricewaterhouseCoopers (PwC) and Deloitte & Touche.
Responding to Channel NewsAsia, PwC said it would use its flexible wage system to help manage costs. Similarly, Ernst & Young said it prefers options like reducing the variable component of overall pay packages and bonus payouts.
Ernst & Young added that it expects to hire about 250 staff in Singapore in FY2009. In the past six months, the firm has recruited over 20 personnel in the region, including some from Singapore. The future of new accountants are dark for the next 3 to 5 years.
KPMG said staff wages form the biggest component of costs outside of office rentals. However, it does not expect any retrenchments after the implementation of a series of measures to counter the impact of the recession.
It added that efforts to control business costs for non-essential operations have already been in place since the fourth quarter of 2008.
Channel NewsAsia understands that KPMG is the first of the “Big Four” accounting firms here to cut wages in the current economic downturn.
The other top accounting firms are Ernst & Young, PricewaterhouseCoopers (PwC) and Deloitte & Touche.
Responding to Channel NewsAsia, PwC said it would use its flexible wage system to help manage costs. Similarly, Ernst & Young said it prefers options like reducing the variable component of overall pay packages and bonus payouts.
Ernst & Young added that it expects to hire about 250 staff in Singapore in FY2009. In the past six months, the firm has recruited over 20 personnel in the region, including some from Singapore. The future of new accountants are dark for the next 3 to 5 years.
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