16 Jan 2012

ANZ to cut jobs in Australia

7:22 am on 16 January 2012

ANZ Bank has confirmed it is looking to reduce staff numbers in Australia as part of cost-cutting measures in tougher market conditions.

It is believed hundreds of jobs are likely to go at the bank in the next six months, but the bank has not confirmed a figure.

ANZ Australia chief executive Phil Chronican briefed union officials on Friday about the bank's outlook and what it will mean for jobs.

Mr Chronican says the bank's retail profit margins are shrinking as its funding costs have risen in recent months because of the sovereign debt crisis in the eurozone.

Mr Chronican says funding costs have become increasingly volatile since the global financial crisis and are now largely unrelated to movements in the official cash rate set by the Reserve Bank of Australia.