The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Scotiabank (Bahamas) yesterday confirmed that around 50 staff may lose their jobs as a result of its restructuring exercise, which will result in six branch closures and the downsizing of two others.

Unveiling the details of branch network changes that will unfold over the next six months, the Canadian-owned bank said three New Providence locations would be “consolidated” into other sites.

Its Caves Village branch will be folded into Cable Beach; the Wulff Road and East Street site will be consolidated at Thompson Boulevard, and the British Colonial Hilton location moved into Rawson Square.

A fourth branch, Cooper’s Town in Abaco, will be consolidated into the Marsh Harbour location, while two other Family Island sites - Stella Maris in Long Island and North Eleuthera - will close outright (also see story on Page 3B).

Finally, Scotiabank’s remaining locations on Long Island and Eleuthera - Buckley’s and Rock Sound - will be downsized to ‘service centres’, with reduced services and hours, and full-service ATMs.

In total, eight branches will be impacted, just as Tribune Business exclusively revealed last week. This newspaper also correctly predicted that three New Providence branches, and locations in Long Island and Eleuthera, would be among those affected.

The bank also yesterday confirmed Tribune Business’s Monday article that 50 staff would likely lose their jobs as a result.

A Scotiabank (Bahamas) spokesman said: “We estimate that approximately 50 employees may be impacted as a result of this initiative.

“However, we are working to minimise this impact. Where there are available positions, we will be giving priority to impacted employees who are qualified, and exploring relocation opportunities for those who are mobile.

“In keeping with Scotiabank’s values, we are committed to treating employees fairly, equitably and with respect.”

Tribune Business understands that the severance packages offered to impacted staff are more generous than what is required by the Employment Act,

Scotiabank (Bahamas) is thus effectively reducing its Bahamas branch network by almost one-third, from 21 to 15, as it moves to address its global chief executive’s concern that it is “over-banked” in the region.

The bank is seeking to cut costs, particularly labour and real estate-related ones, while also exiting islands that have limited profit and growth potential.

Scotiabank is also realigning its business to cope with an elevated non-performing loan book, and labour costs typically count for between 40-60 per cent of a bank’s expense base.

Scotiabank Bahamas’ managing director, Sean Albert, said in a statement: “We conducted a thorough review of our operations and looked for ways to continue serving our customers while growing our business.

“The restructuring follows Scotiabank’s global review of its operating model and international distribution network.”

He added: “Customers of these branches will receive letters outlining the changes to their accounts and what branches their accounts will be transferred to.

“Should they prefer to bank at a more convenient branch, we will be happy to accommodate those requests. Additionally, customers will continue to be able to access their accounts at any other branch, via online, mobile or telephone banking and at any Scotiabank ATM.

“Scotiabank has strong roots in the Bahamas, having been here for almost 60 years. We are focused on continuing to better serve our customers and providing them with the right advice and solutions to meet their needs.”