UK-based banks have cut nearly 65,000 jobs – six and a half times more than Australian banks –with HSBC cutting 30,000 positions and Lloyds 24,000.
The US figures in the report, which apply only to 2011- 2012, show 30,000 positions cut by Bank of America alone.
In Italy, where the economic picture has turned dire, the report notes that there were 10,000 job cuts from 2005 to 2012 while 20,000 people left through early retirement packages subsidised by the state.
As many as 15,000 or so more jobs are expected to go over the next three years, with all the major Italian banks having big redundancy programs in place to 2015.
So it appears that Australian banks have taken a relatively conservative approach to job cutting – a message that is unlikely to bring much cheer to those who have lost their jobs, especially given the enormous profits reported recently by all the major banks.
Interestingly, the UNI report notes that some of the biggest job cuts have been made by banks that continued to make big profits.
“In 14 banks which account for almost 3 million workers, more than 121,000 people have lost their jobs or are about to lose their jobs. At the same time, the same banks made profits last year, in the range of US$4 billion to $40 billion in 2011 alone. For example, HSBC made almost $22 billion of profit in 2011, but decided to cut 30,000 jobs. Deutsche Bank made $7 billion of profit but lost 22,000 jobs,” the report says.
This might also explain to some degree why those sipping tea in Mosman and Neutral Bay and Kew and Hawthorn have not struggled to pay their mortgages – clearly there are still big bonuses being paid from the billion-dollar profits.
However, the UNI report is unlikely to ease any of the anxiety among those working in the lower-echelons of the banking industry (many of whom would be first-home buyers, upgraders or investors) – especially given the constant references from major bank CEOs in the recent reporting season to the tough operating environment.
Indeed it would be naïve to suggest – as some have – that all that’s needed is a bit more sun and blue skies this spring and summer for the property market to rebound.
This article first appeared on Property Observer.
