* Jyske Bank aims to bring down full-time employees to 4,000
* Jyske Bank closes three branches to bring down costs
(Adds details, analyst comments)
COPENHAGEN, June 16 Jyske Bank is to
cut 177 full-time jobs as part of plans to reduce its full-time
staff to about 4,000 from around 4,444.
Jyske Bank, Denmark's second biggest bank by market
capitalisation, said on Monday lower levels of activity,
declining loan volumes, plus a merger of staff functions at
BRFkredit and Jyske Bank were the main reasons for the cuts.
The bank earlier this year agreed to buy mortgage credit
group BRFkredit, which it said would pave the way for cost
"Several jobs will be cut with immediate effect, and this
will unfortunately result in the lay-off of 92 employees," Jyske
Bank said in a statement. The other jobs cuts will come from
planned retirements and internal redeployment over the next 12
Jyske Bank's cutbacks come against a backdrop of slow growth
for the Danish economy since 2010 following the global economic
crisis and the bursting of a housing market bubble.
"With Jyske Bank's relatively poor track record of cost
control in mind, we do not see today's announcement as breaking
news," senior analyst Christian Hede from Nordea Markets wrote
in a note to clients. He said the main focus in coming months
was the impact of Jyske's takeover of BRFkredit.
As part of the cost-cutting efforts, the bank also plans to
close three branches. It currently has 108 branches in Denmark
and five abroad.
Jyske Bank shares were up 0.55 percent by 0740 GMT compared
with a 0.2 percent fall in the Danish benchmark index
(Reporting by Ole Mikkelsen, editing by Louise Heavens and Jane