Wednesday, May 23, 2018

Home Credit Bank to close eight offices in Sverdlovsk

Home Credit Bank announced on Tuesday that it will close eight offices in the Sverdlovsk region in an effort to reduce expenses and optimize assets.

The closures will reduce the number of Bank Home Credit branches operating in the region from 44 to 36. In total, the banking chain will close approximately 200 branches nationwide as it seeks to reduce its number of offices by eight percent in 2014, Ural Business Consulting reports.

Employees working in offices slated to be closed will undergo an evaluation process, after which they will be offered positions at other branches or at other Bank Home Credit corporate facilities.

"Prior to the completion of our assessment and optimization procedure, it's too early to say how many employees will actually leave the company," Bank Home Credit Sverdlovsk Regional Director Mikhail Balabanov said, according to Ural Business Consulting.

Bank officials cited a slowdown in retail lending as the primary factor in their decision to scale back operations. In the first quarter of 2014, retail lending in Russia increased by 2.7 percent over the previous year--a 57 percent decrease in the market's growth rate, Ural Business Consulting reports.

"We now have to bring the size of our chain in correlation with the declining market," Balabanov said, according to Ural Business Consulting. "We are closing down the offices that are located near our other branches to make sure our customers still find it convenient to use our services. Residents of the Sverdlovsk region are still welcome to use 27 more micro-branches; our bank keeps opening deposits and issuing loans as usual."