(Trinidad Express) Finance Minister Larry Howai on Monday said he was concerned about customer confidence in RBC Royal Bank after the bank’s implementation of restructuring strategies, including several layoffs.
“It is something the company will have to manage, but I am confident the management will be able to deal with it,” he told the Express at the Hyatt Regency (Trinidad), Port of Spain.
Despite the group’s recent spate of layoffs, Howai said he believed RBC is still strong, but needs to improve its efficiency and returns to shareholders.
“This last year wasn’t a good one for the bank and they need to take corrective action,” Howai told the Express yesterday at the Hyatt Regency (Trinidad), Port of Spain.
RBC Royal Bank (Caribbean) is part of the Royal Bank of Canada, and is that country’s largest financial institution.
In 2008, RBTT Bank was acquired by RBC for nearly TT$14 billion.
Howai said while he had not met with the bank, the Central Bank had, and he had been assured by Central Bank governor Jwala Rambarran that RBC has a sound strategy.
Asked for an update on Monday at a signing ceremony at St Augustine for the handover of ROYTEC to the University of the West Indies UWI, RBC’s CEO Suresh Sookoo said: “It is a bit of streamlining to serve our clients better. If you look at 2013, it is time to get back to being more efficient and attracting better markets in Trinidad and Tobago.”
On Friday, one third of the bank’s Business Banking Unit— about 20 people—was sent home.
This followed a similar cut in November, when several members of the Private Banking Unit were cut loose and their positions integrated into other operations.
The Express was told by a former employee that workers were given very little notice.
She said a circular had gone out to staff about a month before saying the bank was looking at restructuring for efficiency and to deliver a better standard of service, but nothing specific.
It was a surprise to many, then, when at a staff meeting with the human resource department they were told they were to be relieved of their posts.
The employee, who had lost her job in November, said she had also gotten very short notice, and was put on alert when she realised colleagues with similar portfolios at two branches were let go before she was.
“It is awful. Luckily I had started to put things in order before, but still, in six months I will have to look for something … it’s a big loss of income,” she said, adding she had worked for the bank over 30 years, but was hoping to retire in two more.