Bank of Queensland to cut about 400 jobs

(Reuters) - Bank of Queensland will slash up to 400 jobs and convert all 114 owner-managed branch networks into its corporate structure by March as part of a broad restructuring, the Australian lender said on Thursday.

The Brisbane-based lender expects to incur charges of A$115 million to A$125 million ($77.41 million-$84.14 million) to convert the branch networks over the next four years.

Shares of the firm fell as much as 3.7% to A$6.19.

The bank also estimated a restructuring charge of A$25 million to A$35 million post tax for the job cuts, which will impact its fiscal year 2024 statutory net profit after tax, although it did not disclose the extent of the impact it expects.

However, the job cuts initiative will deliver annual savings of around A$50 million over the next couple of years, it said.

"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.", said Managing Director & CEO Patrick Allaway.

($1 = 1.4857 Australian dollars)

Source: Investing.com