Despite posting a massive K12 billion profit, Standard Bank is expected to lay off about 50 managers in a bid to reduce operating costs, Nyasa Times understands.
Insiders said the move has brought anxiety amongst the managers and other employees as they are not sure about their future at the bank.
“This exercise will include even senior managers including some head of departments who are not part of the executive management team, so everyone is worried,” bank source told Nyasa Times.
Insiders said the exercise will start Monday March 10 and will go throughout the week.
“The sad thing is that this news is coming at a time that we have declared a K12 billion profit and there will be bonuses this month. People do not know what to do now,” said an insider privy to the retrenchments.
There are more than 120 managers in Standard Bank Malawi which is now headed by Zimbabwean born Andrew Mashanda as Chief Executive Officer.
Just in January this year Britain’s financial regulator fined the UK arm of South Africa‘s Standard Bank Group 7.6 million pounds ($12.6 million) for lax anti-money laundering controls of corporate customers linked to people holding prominent public functions.
The Malawi Stock Exchange (MSE)-listed bank has however posted a 52 percent growth in profit in 2013 and its assets have also increased by 41 percent to K166.7 billion from K118.1 billion largely due to a 54 percent growth in customer deposits to K130 billion from K84 billion the year before.