Layoffs on the cards as DBS winds down Islamic banking unit

It will try to absorb majority of staff.

DBS will has decided to gradually wind down The Islamic Bank of Asia Limited, which was established in 2007 as a joint venture partnership between DBS and prominent investors based in the Gulf Cooperation Council.

“As a separate legal entity, IB Asia is unable to achieve economies of scale. This is subject to obtaining approval from IB Asia’s shareholders and receiving regulatory approvals,” DBS said in a statement.

Despite the decision, DBS said that it will continue to develop and distribute Shariah compliant products such as Islamic bonds or Sukuk within its main operations.

“DBS will also do its best to absorb the majority of IB Asia staff and support them through this transition,” the statement noted.