Singapore's DBS Group, southeast Asia's biggest bank by assets, said today it was cutting 900 staff to trim costs amid the global credit crisis, and reported a slump in third quarter net profit.
Chief Executive Richard Stanley said most of the cuts, to be carried out at the end of the month, will come from its offices in Singapore and Hong Kong and will account for six per cent of the workforce.
"To be a streamlined organisation, I believe we must run a tighter ship," he told reporters.
"We have been vigilant on costs but as the economy enters a more difficult and uncertain phase, many financial institutions around the world and in Asia have made headcount reductions," he added.
"To be more productive and efficient, we will restructure and streamline the organisation. Regrettably, this has resulted in the need to reduce our workforce by six percent or about 900 people, primarily (in) Singapore and Hong Kong, by the end of the month."
Earlier today DBS said net profit in the three months to September fell 38 per cent as market-related income took a hit from the global financial crisis and bigger provisions.
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Third quarter net profit totaled 379 million Singapore dollars ($256 million), down from $610 million in the same period last year, it said in a statement.
Analysts polled by Dow Jones News wires had predicted an average $572 million net profit.
"The operating environment is increasingly challenging for financial institutions the world over," Stanley said.