Regional bank to slash 400 jobs, take over branches
Derek Rose |
Bank of Queensland says the decision to cut its workforce by up to 400 roles is part of a plan to become a simpler and leaner business in light of industry wide cost pressures.
The regional bank also announced on Thursday it would convert all 114 of its owner-managed branches to corporate operations by March to simplify its distribution channels.
Managing director and chief executive Patrick Allaway acknowledged the shift represented a substantial change for owner-managers, many of whom had long tenures with the bank.
“We acknowledge, with immense gratitude, their important contribution to the 150-year history of BOQ and will work closely with them to ensure a smooth transition over the coming months,” Mr Allaway said.
He said changes were necessary as part of a difficult process to provide a compelling customer proposition while improving shareholder returns in an environment of rising costs and industry wide margin compression.
“Our heritage retail banking operating model that has served us well in the past, is no longer sustainable in its current state in a lower-returning environment,” Mr Allaway said.
Bank of Queensland downgraded its forecast for return on capital from 9.25 per cent to 8.0 per cent for 2025/25.
Those affected by the lay-offs with receive redundancy and possibly redeployment opportunities, the bank said.
The lay-offs are expected to cost the bank between $25 million to $35 million, but result in an annual savings of about $50 million.
With regard to bank branches, Bank of Queensland said a quarter of its retail customers were now on its new digital platform, but it was committed to maintaining a physical presence in key markets.
AAP
