ANZ cuts jobs to preserve bottom line

Despite a Q1 performance it described as “solid with good results,” ANZ will axe over 1,000 more jobs in anticipation of a worsening of the malaise affecting world banking.

"Our performance in the first quarter has been solid with good results in Asia-Pacific, Europe and America, in institutional and in New Zealand offset by continued margin pressure in Australia," said Mike Smith, Chief Executive Officer.

"The global markets business is recovering after a very difficult trading environment in the fourth quarter of 2011.

"Although our business in Australia is tracking reasonably at present, we have to continue adapting our business model to changes in the domestic and international environment, particularly in retail and wealth," he said.

The “adaptation” includes slashing 1,000 jobs on account of tougher market conditions worldwide. ANZ followed the job cut announcement by reporting it had made a Q1 net profit of US$1.8 billion.

ANZ did not provide a year-earlier comparison figure but said its unaudited profit was about 4% higher than the previous corresponding period.

The Australia and New Zealand Banking Group Ltd, more commonly known as ANZ, is the third largest bank in Australia. ANZ is also the largest bank in New Zealand and has operations in 25 other nations.