Qatar First Bank (QFB) is undertaking cost cutting, which include “strategic” reduction of workforce, and exiting certain private equity investments, as it seeks to optimise resources, enhance efficiency levels and revenues as well as to contribute positively to its shareholders.
“In line with the current market conditions and in order for QFB to emerge as a more efficient and productive contributor to Qatar’s financial market, we have undertaken important cost rationalisation initiatives touching upon both staffing and business related expenses,” QFB chief executive Ziad Makkawi said after the first board of directors meeting following its listing on the Qatar Stock Exchange.
QFB’s efficiency action plan complements the strategy introduced in 2015 that streamlined its businesses to offer corporate and institutional banking, private banking and wealth management, treasury and investments, as well as private equity and real estate.
The efficiency measures are part of the bank’s planned reorganisation, previously introduced and backed by an advanced automated and technology based infrastructure, to enable accelerating the shift from being investment focused to investor focused, he added.
“The current direction to raise efficiency levels is part of our bigger plan, and actually complements our strategy, benefits of which we have started reaping,” he said.
Asserting that it will continue investing in the coming years, Makkawi said the bank is committed to delivering on its promise to grow the business and expand offerings.
“Looking ahead, we are aware that there is still a great deal of work to be done on the bank’s journey to success. As the global investment market continues to go through major challenges, we will continue to explore attractive opportunities that increase revenues generated from all businesses and contribute positively to shareholders’ value,” he said.
By committing to its current strategy and investing in the bank’s future, QFB is effectively maximising the benefit of its QSE listing, a bank spokesman said.
“Through focusing on business lines that are expected to generate income, positively exiting from some of its private equity investments, and efficiently utilising its human capital; QFB aims to raise shareholders’ value and enhance profitability levels,” Makkawi said.