National Australia Bank, owner of the Clydesdale and Yorkshire bank brands, is to cut 1,400 jobs in the UK by 2015 as part of a streamlining of operations.
The bank has completed the strategic review of its British business, which it started in February as a result of weak economic conditions. It plans to close 29 of the banks’ 73 financial solution centres, which offer services to businesses and higher-net-worth investors, and merge nine others with local retail branches. The changes would mainly affect operations in the South of England.
NAB plans to pull out of commercial lending in Scotland and the North of England and will instead focus on retail and small business lending in these areas.
The restructure is expected to result in annual cost savings of around £74m and the workforce will be cut from around 8,300 employees to around 6,900.
The UK unit posted a £25m loss in six months to March 31 compared with a £77m profit the previous year.
London & Country associate director of communications David Hollingworth says: “Closing branches and other consumer-facing areas should have little impact on its intermediary mortgage proposition.”