The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Royal Bank of Canada (RBC) believes most of its Caribbean-wide restructuring will be complete or “in progress” by April this year, as tensions among staff in the Bahamas and elsewhere in the region mount over potential redundancies.

A January 23, 2014, note sent to Royal Bank staff throughout the Caribbean by regional chief executive, Suresh Sookoo, and president Kirk Dudtschak, warned that the institution needed to continue to “reposition and strengthen”.

This was sent just prior to Royal Bank’s decision to exit the Jamaican market by selling its business to Sagicor, while Trinidadian trade unions are on full alert over rumours the bank will close nine branches there, following the lay-off of some 20 business unit staff.

The Bahamas is unlikely to be immune from this, as Royal Bank joins its fellow Canadian banks, CIBC FirstCaribbean International Bank and Scotiabank, in downsizing to cut costs and combat heavy loan losses that have reduced profitability.

The letter from Messrs Sookoo and Dudtschak warns that Royal Bank will be “aggressively reducing costs”, and that this will “accelerate” in early 2014 in a bid to ensure the institution operates “as efficiently and effectively as possible” in markets where it is among the leaders.

The duo acknowledge this will not be easy “given the impact on you, our employees”. They pledged to give impacted staff as much warning as possible, and give support to those forced to leave Royal Bank.

The institution has confirmed it has no plans to exit the Bahamas.