Update: ANZ Bank is to cut about 1000 jobs as the company shrinks its Australian workforce to adjust to weak demand for financial services.
The Finance Sector Union made the announcement a short time ago.
The job cuts come just days before the ANZ is expected to report a first-quarter cash profit of $1.44 billion. Last Friday, the bank also broke ranks with the RBA to lift its variable lending rate 6 basis points - claiming the rise clawed back just one-third of the increase in its own borrowing costs in recent months.
Speculation has centred on the ANZ as likely to be among the most aggressive of the major banks in terms of job cuts, with BusinessDay last month foreshadowing the big reductions.
ANZ shares are up today, gaining 25 cents, or 1.2 per cent, to $21.67, outperforming a flat overall market.
Westpac last month announced plans to cut about 560 jobs with internal sources saying the number may be triple.
Despite earning about $24.3 billion in profit last year, the big four banks are looking at cost-cuts as a means to maintain those profit levels. Demand remains soft for banking services in much of the economy as consumers and businesses try to pay back loans rather than take on fresh debt.
ANZ is yet to comment on today's job cut numbers although the head of its Australian operations, Phil Chronican, recently suggested cost cuts were on the table, saying 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".
Separately, the Australian Bureau of statistics today reported that the number of home loans approved in December rose 2.3 per cent for the month - better than economists had forecast. The Reserve Bank cut its interest rate in both November and December, with most banks passing the reduction in full to customers.
Westpac, others cut
Westpac is so far the most advanced in terms of job cuts, this month outlining plans to axe as many as 400 positions, mostly back-office roles, while outsourcing a further 150 jobs.
Staff cuts are banks' most effective response to a slowdown in lending, which has slumped to almost three-decade lows.
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,'' said Evans & Partners analyst George Gabriel.
The Finance Sector Union also said National Australia Bank has cut 130 jobs so far this year, with 30 of them in the mortgage lending area. The other job cuts were across a variety of back office functions. NAB was not immediately available for comment on the reductions.
Last week investment bank Macquarie Group revealed that it had cut some 1000 positions over the past year. Half were from the bank's global businesses.
Commonwealth Bank boss Ian Narev last week told staff 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 with the bank tipped to report a first quarter profit of $1.45 billion. This is expected to be largely flat on the same time last year.
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, slowing credit growth and poor wealth management results, all 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.
with Chris Zappone
BusinessDay
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