100 workers of First Atlantic Bank laid off after merger

About 100 workers of First Atlantic Bank are said to have been laid off after the bank completed its merger processes with Energy Bank.

The merger of the two banks is said to have led to duplication of roles, leading to the redundancy.

Also, a restructuring of the bank’s operations resulted in the closure of some of its branches due to strategic reasons.

The processes affected staff of both banks that were consolidated.

Citi Business News learnt that the figure of 100 was arrived at following recommendations from an independent consultant.

Even though negotiations are ongoing to determine the exit package for the workers, the affected staff are said to have rejected an initial severance package put on the table by the management of the bank.

The workers are demanding for better severance packages because they claimed some of them are still servicing loans acquired from the bank.

First Atlantic Bank poised for growth

A statement from the bank in May said after its merger with Energy Commercial Bank, First Atlantic Bank now has GHc409 million in core stated capital which more than the GHc 400 million statutory minimum now in force.

This, it said supports total assets, as at the end of the first quarter of 2019, of GHc2.1 billion, which is instructively 31% more than the balance sheet size as at the end of 2018.

It explained that this has been funded in part by a 19% increase in deposits over the 12 month period to end of March 2019, to GHc1.6 billion, which reflects the confidence its customers have its financial solidity as well as the sheer customer focus of all its activities.

By the end of the first quarter of 2019, First Atlantic Bank had outstanding loans and advances with its customers to the tune of GHc546 million this being up 58% on the size of the loan book one year earlier.