Israel's Bank Leumi to cut jobs, close branches

JERUSALEM Feb 12 (Reuters) - Bank Leumi, one of Israel's largest banks, said on Sunday it will cut jobs and close branches as part of an efficiency plan aimed at saving hundreds of millions of shekels a year and boosting its profitability.

Leumi, Israel's largest bank in terms of assets, said it will reduce its workforce by 300 jobs in 2012 and 800 in total by 2014, mostly from natural retirement, while 10 percent of its branches will be closed in the next three years.

The bank, which currently employs 9,725 people, aims to save 350 million to 400 million shekels ($94-$108 million) a year.

Leumi posted a 74 percent drop in third-quarter net profit to 155 million shekels, mainly due to the impact of weak stock markets on its securities portfolio and higher credit losses as the economy weakens.

Its shares were up 2.2 percent at 12.21 shekels at 1045 GMT compared with modest losses on the broader bourse.

($1 = 3.72 shekels) (Reporting by Steven Scheer; Editing by Erica Billingham)