ANZ will meet finance union representatives today amid growing fears it is preparing to unveil the detail of plans to cut jobs to reduce costs.
Create a free account to read this article
$0/
(min cost $0)
or signup to continue reading
There has been speculation that ANZ is likely to be one of the most aggressive of the big banks in cutting jobs. The Finance Sector Union has previously claimed as many as 900 jobs could be at risk throughout the bank.
ANZ has not commented on this number, although the head of its Australian operations, Phil Chronican, recently suggested cost cuts were on the table. He said the bank needed to "reshape its business" by becoming leaner and more agile.
An ANZ spokesman said yesterday: "We meet with the FSU regularly in the general course of business and we have nothing to announce at this time."
Westpac is so far the most advanced in terms of job cuts. Earlier this month it outlined plans to axe as many as 400 positions, mostly back office roles, while outsourcing a further 150 jobs.
Staff cuts are the banks' most effective response to a slowdown in lending, which has slumped to an almost three-decade low.
Analysts calculate that ANZ has the most scope to cut jobs, since its costs are highest relative to revenue.
''While all banks improved their revenue to full-time employee ratio over a five-year period, ANZ was the only bank that saw a decline in cash profit per employee,'' an Evans and Partners analyst, George Gabriel, said.
The investment bank Macquarie Group revealed last week it had cut some 1000 positions over the past year. Half of these positions were from the bank's global businesses.
The Commonwealth Bank boss, Ian Narev, told staff last week he has "no target or plans" for major job cuts.
"We take a long-term view of our business; and that means we must always be looking for ways to improve our customers' experiences with us while increasing efficiency," Mr Narev said in a memo to staff.
"This ongoing focus has, and may continue to, result in some specific roles no longer being required, but may also create other opportunities."
ANZ will update investors on Friday. The bank is tipped to report a first quarter profit of $1.45 billion. This is expected to be largely flat on the same time last year.
A Deutsche Bank analyst, James Freeman, said the first quarter results would not be the "shining light in terms of bank earnings" with a range of factors, from funding costs to slowing credit growth, weighing on earnings.
Any large-scale job cuts are likely to result in a one-off cost to ANZ of about $17 million taken in the first half, Mr Freeman said.
