No job cuts for now, says Bank Simpanan

KUALA LUMPUR: Bank Simpanan Nasional (BSN), which started its rebranding exercise late last year, does not expect any job cuts despite weak economic conditions that have led several banks to rationalise their staff size.
"For us it (reducing staff) is not an easy thing. One of the things we do is provide employment. We have grown over the years from a mere 4,000 staff to 7,000 staff.
"It is a big issue if we want to downsize it. We would need to talk to our stakeholders. Nonetheless, having said all that, if it is really necessary, as in it is a matter of survival, if it has to be done, it has to be done," BSN chief executive Datuk Adinan Maning told SunBiz in an interview.
In January last year, London-based Standard Chartered Plc announced an 11% reduction in its Malaysian headcount while CIMB Group Holdings Bhd completed its mutual separation scheme (MSS) exercise in July.
In September and October, RHB Capital Bhd and Hong Leong Bank Bhd (including its Islamic banking arm) announced a voluntary career transition scheme and an MSS respectively.
Adinan said there is no need for any retrenchment exercise at this juncture and the bank will not reduce its staff size as long as it is able to sustain its business, bearing in mind that providing jobs is one of its mandates, along with financial inclusion and literacy.
"We try to stay profitable so that we can sustain this. The big difference between us and other banks is, my stakeholders do not expect big fat dividends every year. As long as you make enough profit to sustain your operation, you're alright.
"Hopefully, when the economy picks up again – definitely it will, nothing stays forever like this – you make more money and there you are, you survived. But if it is prolonged, you have no choice; if the situation persists and every day you are losing money, if it is really crucial, then you have to do what you have to do. No question about it," he added.
Commenting on this year's outlook, Adinan, who does not expect much improvement in the economy in 2016, said BSN will continue with its rebranding exercise and expansion plans in terms of growing agent banks.
" I don't think we will expand that very much. We have spent quite a bit of money on rebranding. If you are talking about expansion in terms of staff numbers, we will not do that. Opening new branches yes, we will probably open one or two branches, (but only) if it is necessary and feasible. The agent banks, we will still grow.
"What we want to see is growth in terms of our loans. It may not be huge given the situation, we will not hit double-digit growth in terms of loan assets but it has to grow, it cannot be negative, otherwise it is hard to sustain this business," he added.
As at Dec 31, 2015, BSN's unaudited net loans and financing stood at RM20.2 billion of which personal loans/financing was RM11.3 billion, mortgage loans/financing RM7.7 billion and micro finance RM543 million.
As for new products, Adinan said BSN is planning to offer simple insurance products through agents and is in the midst of working with insurance companies. It hopes to announce the offerings this year.
As for its rebranding exercise, which includes internal and external changes, he said BSN's new core banking system will be ready by year-end.
"We have already changed a lot of processes over the years. We are about to complete our core banking system to be put in place so that we can be more efficient. One part of it is coming early 2016 and the other part is end of 2016.
"We have changed a lot of products, we are streamlining them and we are becoming clearer in the way we do things, in our product offerings," he said.