Bank Vozrozhdenie will cut 10% of staff

With the beginning of the year Bank Vozrozhdenie has already cut more than 5% of staff and plans to cut to 10% before the end of the year. This was stated by Deputy Chairman of the management Board of Bank Vozrozhdenie Andrey Shalimov, presenting the statements in accordance with IFRS for the first quarter. The effect of optimization will be about 1 billion rubles, however, the shareholders may decide to allocate these funds for business development, said the banker.

As explained Shalimov, if employees affected by the reduction who are able to work to another position in the Bank, it is to be welcomed. “Our task is not to remove people,” he added.

So far, the effect of optimization in the first quarter no, it will be visible from the second quarter, said Shalimov. As explained by the banker, there are many nuances, which allows to reduce personnel costs through integration of business “Renaissance” with the business of PSB.

“There are decisions related to business optimization. In some regions, for example, it is possible to abandon the branches. This gives you the opportunity to free resources. Also the process of centralization of offices,” — said Shalimov.

In the first quarter net loss (RAS) of Vozrozhdenie Bank under IFRS amounted to RUB 269 million compared with a net profit of 40 million RUB over the same period last year. In 2015, the Bank reported a net loss of RUB 3.8 bn Forecast in the Bank’s profit in 2016 has not changed: the Bank expects to earn 2.5 billion rubles.

Bank “the Renaissance” in early 2015, said about the optimization of operating costs and the intention to reduce 15-20% of the staff, wrote the newspaper “Kommersant”. “In the long term of one year and a half years we plan to cut about 1 thousand people, which accounts for around 15-20% of the total population of the state”, — told the head of the Bank Igor Antonov.

In November 2015, the Bank reported to reduce staff, which in annual terms amounted to 8.3%, or 500 people. Then Andrey Shalimov said that “we need to continue to move in this direction”.

In 2015, the Bank cut 358 employees, or 8% of the total number of employees. The payroll was reduced from 4.3 billion to 3.8 billion rubles.