Piyush Gupta: «What is the Logical Construct for Life After Covid?»
While there are some takeaways from experience in work-from-home conditions, DBS chief executive Piyush Gupta echoed industry sentiments about the importance of retaining physical touch as the banking industry grapples with life after the pandemic.
Currently, around 30 percent of DBS staff are working in offices with the remaining working from home. Although there could be gains in marginal efficiency such as costs saved, Gupta echoed common industry sentiments about which way the business should skew.
«We are still working through: what is the logical construct for life after Covid?» Gupta said in a recent results announcement.
«I'm personally not in the camp to shut down all the offices and all the large buildings. My view is that, while there will be a great degree of can be flexibility, I do think there is still a lot of merit to coming to physical spaces.»
Employee Fatigue
Although some employees may prefer the benefits of work-from-home measures be it for actual productivity gains or personal preferences – Hong Kong saw the infamous case of Hang Seng bankers caught hiking during business hours – many more say otherwise.
«Frankly after three or four months, we are seeing that a lot of [staff] beginning to suffer fatigue,» Gupta said. «And they are actually quite desirous and anxious about being able to return back to the office space.»
It remains to be seen how quickly DBS’s workforce will be able to return given a recent surge in coronavirus infections in Singapore which included 900 cases yesterday.
Some Pay Cuts, No Job Cuts
Employees’ work conditions aside, Gupta also reiterated the bank’s commitment to supporting workers in trying times and again pledged that no jobs would be cut. But he did note that adjustments will be made with regards to variable compensation such as bonus cuts.
Although the bank saw second-quarter net profits drop 22 percent resulting in a 26 percent first-half tumble, DBS still beat analysts forecasts. The bank posted S$1.25 billion ($913 million) in second-quarter profits compared to the forecasted average of S$1.19 billion, according to Refinitiv data on five analysts.
«This was a tough quarter,» Gupta added. «And a tough quarter principally because the full impact of the interest rate cut [was felt] through our entire book. At this point in time, the interest rate cuts are costing us about S$80 million per month and will probably go up to S$100 million by next year.»
