NAB to close 100 bank branches across the UK |
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Published
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Wed, 11 May 2005 18:40
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Job losses cut deeper into the banking industry today as the Australian Bank, National Australia Bank (NAB) declared that it was closing down many branches of the Glasgow-based Clydesdale Bank and the Yorkshire Bank.
NAB said it would shut 100 branches of the two banks in Britain, with 60 branches of the Clydesdale bank pulling down its shutters and 40 Yorkshire bank divisions packing up over the coming year and a half. The news of these job cuts came as NAB announced its net profit in the first half of the year that rose by 10%.
| NAB clarified that about 4,200 jobs would be slashed over a period of two years. Moreover, out of the 2500 job cuts in Australia, about 400 Asian staff would be sent home from NAB’s offices in Singapore, Korea and Malaysia, which will also be closed down along with the Tokyo securities company. However, NAB plans to retain its Hongkong office.
In March, the bank had already cut about 1,700 jobs at the Clydesdale and Yorkshire branches in its bid to save around £117 million ($220 million) annually. This downsizing drive by NAB is also being looked at as an attempt to minimize costs and augment savings.
Meanwhile, Federal Treasurer, Peter Costello told the local radio, "I feel for the people who have lost their jobs" and that the bank "better have a pretty good explanation" for such a job slash.
On the other hand, John Stewart, NAB’s chief executive seemed to justify the cost-cutting program and said, “This is in response to the changing needs of our customers, which has meant some branches are no longer viable. Our research has shown that in any one month, 75 percent of our customers do not use a branch at all, and 11 percent use a branch only once. This is about providing our customers with the appropriate network for their needs.”
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