Bank of Queensland reveals plans to axe 600 jobs

The Bank of Queensland is to lay off up to 600 staff as part of a “simplification and digitalisation policy”.

The announcement comes just a year after the bank, which specialises in lending to regional Queensland, previously announced it would cut 250 jobs.

It is known that the latest cuts will affect marketing, human resources and retail banking.

It was reported that management is in discussions with the bank’s 3,163 employees about the layoffs, The Australian reported.

In April, the bank reported a half-year profit of $172 million, down a third from the same period last year but still beating market expectations.

Bank of Queensland CEO Patrick Allaway admitted the lender faced a number of economic headwinds to remain profitable, including pressure on net interest margins and weaker demand for mortgage loans.

“We are working on new pathways and additional initiatives to ensure we achieve those goals,” he said at the time.

In April, BOQ said it had automated 43 key processes in six months and reduced the cost per mortgage settlement by 6 percent compared to the same period before.

The bank will soon no longer accept new customers who want to take out a mortgage through the broker channel.

“We will continue to be active in the brokerage market with ME. ME has been recognized by the industry for years for its fast turnaround times and responsive support by a passionate support team,” the email said.

‘Our ME brand is our largest in the brokerage market. We will be updating the BOQ broker portal with more details on how to manage in-flight applications and how to access ongoing support for new loans for existing customers.

“We continue to assess customer needs and market conditions to determine how our brands can support the retail broker channel in the future.”

In April, the bank reported half-year profit of $172 million, down a third from the same period last year.

Last year, BOQ was reprimanded by financial crime watchdog Austrac for inadequate compliance and risk systems and ordered to draw up a plan to address the issue.

The Australian Prudential Regulation Authority, which oversees the financial sector, said BOQ had acknowledged its previous weaknesses in risk management and risk culture

However, APRA said the bank’s recovery plan should include a clear timeline for implementation, including a detailed description of the ‘persons responsible and accountable’ for each recovery activity.

In February 2021, BOQ acquired ME Bank to take the step towards fully digital banking.

BOQ said the $1.3 billion deal would increase its customer base from about 900,000 to 1.45 million, with ME contributing about 550,000.

According to the April half-year financial report, ME represents approximately 340,000 of BOQ’s 1.4 million customers.

This represents a 38 percent decrease in the number of ME customers in three years.