Many banks in the United Arab Emirates are now concentrating on reducing their core cost levels through shrewder cost management and by implementing new strategies which will mean overall savings.
The Emirates National Bank in Dubai is an example of one bank who is implementing these types of cost saving measures. In 2009 they reduced their costs in relation to income levels, by one third in the first three months of 2009 and by almost 37% in the final three months of the year. The bank stated at the time that they were able to do this through careful cost management and through the integration of synergies while still maintaining investment in core areas such as technology and government investment.
The First Gulf Bank reduced their cost-to-income by almost 15% in the first quarter of 2010 and this was following through on cost reductions that were becoming apparent during the 2009 accounting period. They say they effectively managed their expenses for the period and their cost-to-income ratio is now the lowest in the banking industry.
While these banks may have been the leaders for the period every bank has undoubtedly seen some cost reduction during the past eighteen months, the Abu Dhabi Commercial Bank dropped its costs by 4%. ADCB also recorded a 26% increase in operating income for the period.Paul Holdsworth, Staff Writer, Gulf Jobs Market News