June 16, 2014 / 8:32 AM / 3 years ago

UPDATE 1-Jyske Bank to cut 177 full-time jobs to reduce costs

* 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 (Reuters) - 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 efficiencies.

“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 months.

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 Merriman)

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