Commonwealth Bank Cuts 20 Positions in Global Markets Teamby and
The reductions are part of CBA's efforts to trim costs
The cuts were spread across countries where the bank operates
Commonwealth Bank of Australia, the nation’s largest lender by market value, has cut 20 jobs across its global markets business to reduce costs.
The job reductions were spread across the team globally, according to an e-mail from the Sydney-based bank Tuesday. The global markets business is part of Commonwealth Bank’s institutional banking and markets unit, which operates in countries including the U.S., U.K., China, Hong Kong, Singapore and Australia.
“We have communicated changes today within Global Markets that impact some individual roles,” according to the e-mail. “These changes create a more efficient allocation of resources to deliver results for our clients in an increasingly cost constrained environment.”
Banks worldwide have been trimming jobs amid a multi-year slowdown in trading revenue and increased compliance costs. Firms from Credit Suisse Group AG to Barclays Plc are pulling back from some trading operations as investors hold back from buying and selling assets amid concern about a slump in the price of oil, higher interest rates in the U.S. and the Chinese economic slowdown.
Australian lenders are reducing costs as increased competition and regulation eats into margins. Commonwealth Bank said in August it had saved A$260 million ($188 million) in the year to June 2015 due to measures aimed at increasing productivity. It’s cost-to-income ratio improved 10 basis points to 42.8 percent last year, it said.
Commonwealth Bank’s global markets business focuses on fixed income, foreign exchange, commodities and interest rates, and also has a markets research and quantitative analysis team, according to the lender’s website.
Commonwealth Bank shares roses 0.2 percent to A$77.68 at 3:32 p.m. in Sydney. The benchmark S&P/ASX 200 Index was little changed.