National Australia Bank to slash 1,400 jobs in Britain

National Australia Bank on Monday said it plans to restructure its struggling British business, slashing more than 1,400 jobs at the loss-making arm by 2015.

The announcement came as Australia's fourth biggest bank said its unaudited first-half net profit fell to Aus$2.05 billion (US$2.14 billion) in the six months to March 31, 15.6 percent below the previous corresponding period.

The result came after the lender booked writedowns and restructuring charges at its British division worth a combined 456 million pounds (US$742 million). NAB said it had completed a strategic review of its British assets to adapt to weak economic conditions, with the business to be simplified to focus on retail and small business lending in Scotland and northern England.

Chief executive Cameron Clyne said the review was undertaken because recovery in the region was now considered a longer-term prospect.

"In the last half-year there has been a significant downgrade in the growth prospects of the UK economy, in part reflecting the drag on its recovery from heightened weakness in the eurozone," he said. AFP