Major bank to axe 200 jobs due to slow lending growth

by AB18 May 2016
ANZ has announced it will be cutting about 200 jobs in its Australian unit due to slower lending growth.

The reductions will largely be in Melbourne and affect managerial and back-office roles in areas such as marketing and project management, Melbourne-based spokesman Stephen Ries said in an e-mail Tuesday, according to Bloomberg News.

“The changes are in response to subdued economic conditions, low lending growth and the need to simplify our business and improve productivity,” Ries said. The lender also placed a freeze on external hiring, he said.

The announcement comes just after the major bank announced a 24% drop in its first half cash profits earlier this month, with the bank also cutting its dividend by 7%.

ANZ’s cash profit fell to $2.8 billion, substantially below the consensus forecast of $3.6 billion. Growth in mortgages, which make up two-thirds of their assets, also slipped to the lowest in almost a year, central bank data showed according to Bloomberg News.