RBC announces layoff plans

The Nassau Guardian

RBC announces layoff plans

RBC Royal Bank and RBC FINCO yesterday announced plans to create a third shared banking location, which will lead to “across the board” redundancies.

The move is part of an effort to cut costs, improve efficiency and give better customer satisfaction, according to Nathaniel Beneby Jr., RBC Royal Bank’s managing director in The Bahamas, Cayman Islands and Turks & Caicos Islands.

The restructuring process is ongoing, Beneby said, adding that he could not say how many employees will be let go.

Some of the affected workers have applied for other job opportunities within the bank and have already secured different positions, Beneby said.

“Those who will be disengaged, we have enhanced packages and we are providing very strong support to our employees,” he told reporters at a press conference.

“We are confident, at the end of the day, that the net reduction will be favorable.”

Beneby added that the bank is operating in an environment of “increasing costs” and said staff reduction is just one measure to scale back expenses.

“We are looking at all of our operating costs,” he said.

“We are taking a holistic approach at managing costs, for example, real estate costs, stationary and printing, cleaning. Staff costs are just another cost line.”

When asked if high levels of loan arrears affected the bank’s decision, Tanya McCartney, managing director of RBC FINCO, said that, while high, the bank’s non-performing loans are below industry standards.

McCartney is also preparing to leave the bank in May, a move unrelated to the layoff announcement.

RBC FINCO’s main branch on Shirley and Charlotte Streets will relocate to RBC Royal Bank’s main branch on Bay Street as of May 12.

RBC FINCO’s Mortgage Centre in the Prince Charles Shopping Plaza will be consolidated with RBC FINCO’s Carmichael Road branch as of May 5.

The other shared location is in Grand Bahama.

The three shared locations will have integrated customer service.

“This means that RBC FINCO customers will make deposits, cash withdrawals, foreign exchange purchases, wire transfers, these all will be done at the RBC location,” Beneby said.

“The objective here, really, is to create a one stop shop concept for our customers, particularly the RBC FINCO customers. They will now have the benefit of access to the full suite of products and services of Royal Bank.”

The announcement came nearly a month after officials from UBS (Bahamas) said 70 employees would be impacted by the closure of its private banking unit over the next 10 months.

In January, Scotiabank confirmed its plans to move certain functions from The Bahamas to Trinidad and Tobago in an effort to enhance “the efficiency and effectiveness” of its operations.

It is unclear how staff levels will be impacted because of Scotiabank’s move.

 

 

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