BNP Paribas seeks new offshore center as bank drives down costs

BNP Paribas SA is scouring for a brand new low-cost location to accommodate help workers as a part of plans by the French financial institution to maintain driving down prices underneath its new strategic plan. 

The Paris-based lender, which has long-standing technical and administrative operations in India and Portugal, needs to decide on a 3rd nation to host extra middle- and back-office staff, folks conversant in the plans stated. The lender goals to decide within the coming months, the folks stated, requiring anonymity because the plans aren’t public but. 

BNP Paribas is ready to unveil a brand new strategic plan on Feb. 8 during which efforts to trim prices are anticipated to function. On the identical time, the lender is contemplating boosting its payout ratio to 60% from 50%, rewarding buyers after the lifting of pandemic-era restrictions on dividends. 

A spokeswoman for BNP Paribas declined to touch upon the issues. 

The lender had about 10,900 staff in India as of the tip 2020, and a few 6,585 folks in Portugal. Smaller help operations exist in different international locations.

Additional cost-cutting efforts are underneath approach in Italy. BNP’s Italian unit Banca Nazionale del Lavoro SpA is spinning off its again workplace and IT actions by promoting them to specialised corporations which take pleasure in scale, could make the wanted investments and enhance the standard of service for purchasers, in line with folks with information of the matter. 

BNL reached separate accords to promote the IT enterprise to Capgemini SE and the again workplace operations to Accenture PLC, the folks stated asking to not be named as a result of the method is personal. As a part of the accords, about 900 staff will transfer to the brand new entities and the Italian financial institution has signed outsourcing accords to get companies from them.

Employees at BNL went on strike for the primary time for the reason that Nineteen Nineties on Dec. 27 to protest back-office and IT workers cuts. A brand new strike is scheduled for Jan. 24, unions stated in an announcement. 

This story has been revealed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.

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