| 14.01,12. 03:46 AM |
ANZ expected to axe 1000 jobs
January 13, 2012
AUSTRALIA'S third biggest lender this morning revealing to the Finance Sector Union that job-losses were on the cards.
ANZ has made Friday the 13th a lucky one for its customers, after choosing to keep its variable interest rates for retail and small business lending unchanged.
But the news isn't as rosy for bank employees with a large number of job losses on the cards.
Finance Sector Union National Secretary, Leon Carter this morning told The Daily Telegraph he 'surprised' when ANZ used the words "job-losses".
"Banks always talking about cost-cutting exercises, but this is the first time in a long time that we've heard them talking about actual job losses."
While the number of jobs to be cut have not been revealed, Mr Carter added he expected the number to be close to 1000.
"Its absolutely clear the number will be in the many hundreds, our belief is close to 1000."
In explaining their review of interest rates, ANZ CEO Australia Philip Chronican this afternoon said "In coming to our decision this month we wanted to be clear that these higher interest rates we are now paying our depositors and the elevated prices we are required to pay for wholesale funds are going to be sustained given the volatility we saw late last year."
"We also assessed our competitive position, the subdued state of credit demand and the overall state of the economy and decided it was prudent to maintain our current rates at this time."
The review was the first from ANZ after opting last month to break free from the Reserve Bank's monthly cycle Colin Whitehead, of Fat Prophets, said the move was meant to change the public's perception that ANZ's loan rates, and cost of funds, are tied to the RBA's cash rate.