Stanbic Bank targets 200 employees in layoff plan

#1
Ni kubaya wadau , and many more are coming up .

Stanbic Bank targets 200 employees in layoff plan
MONDAY, JULY 29, 2019 11:01
BY CHARLES MWANIKI

Up to 200 employees of Stanbic Bank are facing layoffs under an early retirement scheme intended to cut payroll costs for the lender.
The employees were given terms of the voluntary retirement plan about two weeks ago, with the lender citing digitisation as the major reason for the job cuts.

All permanent and pensionable employees of the bank are eligible for the plan, as per terms of the redundancy scheme seen by the Business Daily.
The early retirement plan presented to the staff shows that those taking up the severance option will get an "ex-gratia payment calculated at the rate of 1.5 month’s salary for each completed year of service in recognition of the service rendered to the bank by the employee."
This is in addition to the pay in lieu of notice and compensation for unused leave days.

The lender has also offered employees signing up for the layoff plan a 25 per cent rebate or discount on the balance of any outstanding staff loans settled immediately upon exit.
The exiting employees will continue repaying their loans on staff interest rates for a period of six months, after which the outstanding amounts will revert to commercial terms.

They will also be allowed to remain on the bank’s medical scheme until the end of the year, with an option of opting out and getting paid the equivalent of the cost of the insurance to the bank.
Further details
Stanbic had not responded to Business Dailyqueries on further details of the early retirement plan including the cost to the bank by the time of going to press.
Companies ordinarily offer employees the early retirement option with an eye on long-term cost savings, which is reflected in subsequent years’ financials.
Stanbic Bank’s employee costs rose by three percent in 2018 to Sh5.595 billion. In the first quarter of the year however, the lender cut its staff costs by 5.3 percent to Sh1.417 billion compared to a similar period last year.
Total operating costs rose by 25 percent in the first quarter to Sh3.55 billion, from Sh2.85 billion in quarter one of 2018.
The bank has been reporting strong profit growth in the past two reporting cycles, on the back of higher interest income and non-interest earnings.
In the first quarter of this year, the bank reported a 19.3 percent jump in net profit to Sh2.2 billion, building on a robust performance in the full-year ending December 2018 when net earnings had jumped by 45.5 per cent to Sh6.27 billion.
 

pipinono

Village Elder
#4
Unless I have a cheque to cash, huge loads of money in cash, or want a loan, what's the point of visiting a bank branch?

Mobile and agent banking only means more bank branches will continue to be closed. And bank's profits will remain unaffected (or rise).
This is no longer news.
True. For the affected; you can only realize you can swim when pushed to the deep end of the pool.

All the best in your swimming.
 

spear

Village Sponsor
#5
Banks cartel will use rate caps as an excuse to retrench but in real effect they are making huge profits than ever before. Secondly Fintech and technology is constantly reducing manual transactions in banking. Look at the fastest growing bank Equity in the last 5 years. Their appetite for rapid branch growth reduced to a fickle. Since they went big in agency banking they created 1000's of jobs at the agency while shrunk its own staff numbers. The end result is 70% of the bank transactions is now handled away from branches. SMEs are the most active at branches and analogue customers.

However there is a bigger change manifesting itself in our job market. Those white collar jobs of sitting behind a desk, punching in and out 8-5 slave jobs are dying out. They are not as productive since most of the time people are idling on social media anyway. The future job markets remain technical skills aka blue collar jobs in a workshop, industry, entrepreneurship or farming. Equip your hands on technical skills and you will survive.
 
#7
The exiting employees will continue repaying their loans on staff interest rates for a period of six months, after which the outstanding amounts will revert to commercial terms.
stanbic has spit a lodge of sputum into their open palm and rubbed the sputum along their penis and told the employees "bend over and spread your ass cheeks. i wanna feel duodenum today"
 

Mangele

Village Elder
#15
Ni kubaya wadau , and many more are coming up .

Stanbic Bank targets 200 employees in layoff plan
MONDAY, JULY 29, 2019 11:01
BY CHARLES MWANIKI

Up to 200 employees of Stanbic Bank are facing layoffs under an early retirement scheme intended to cut payroll costs for the lender.
The employees were given terms of the voluntary retirement plan about two weeks ago, with the lender citing digitisation as the major reason for the job cuts.

All permanent and pensionable employees of the bank are eligible for the plan, as per terms of the redundancy scheme seen by the Business Daily.
The early retirement plan presented to the staff shows that those taking up the severance option will get an "ex-gratia payment calculated at the rate of 1.5 month’s salary for each completed year of service in recognition of the service rendered to the bank by the employee."
This is in addition to the pay in lieu of notice and compensation for unused leave days.

The lender has also offered employees signing up for the layoff plan a 25 per cent rebate or discount on the balance of any outstanding staff loans settled immediately upon exit.
The exiting employees will continue repaying their loans on staff interest rates for a period of six months, after which the outstanding amounts will revert to commercial terms.

They will also be allowed to remain on the bank’s medical scheme until the end of the year, with an option of opting out and getting paid the equivalent of the cost of the insurance to the bank.
Further details
Stanbic had not responded to Business Dailyqueries on further details of the early retirement plan including the cost to the bank by the time of going to press.
Companies ordinarily offer employees the early retirement option with an eye on long-term cost savings, which is reflected in subsequent years’ financials.
Stanbic Bank’s employee costs rose by three percent in 2018 to Sh5.595 billion. In the first quarter of the year however, the lender cut its staff costs by 5.3 percent to Sh1.417 billion compared to a similar period last year.
Total operating costs rose by 25 percent in the first quarter to Sh3.55 billion, from Sh2.85 billion in quarter one of 2018.
The bank has been reporting strong profit growth in the past two reporting cycles, on the back of higher interest income and non-interest earnings.
In the first quarter of this year, the bank reported a 19.3 percent jump in net profit to Sh2.2 billion, building on a robust performance in the full-year ending December 2018 when net earnings had jumped by 45.5 per cent to Sh6.27 billion.

This is a very generous offer. I would take it in a heart beat.
 

Bigfish1

Village Elder
#17
Funny they pull such a stunt then hire guys on contracts cheap.
For people with loans I see them coming out negative, but if you took a loan and made good use of it, then you'll be good.
Wah, Kenya yetu....
 

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