NZI Bank retrenches

Press, 1 April 1989, Page 28

NZI Bank retrenches

PA Wellington NZI Bank is laying off about 50 staff in moves to reduce the size of its operation after heavy financial losses.

The NZI Bank’s chief general manager,. Mr Michael Hamilton, said yesterday that the company had been surveying its position after research clearly showed it needed to refocus its mainstream activities.

He said NZI Bank would continue to offer the same range of services in all areas.

“All banks are having to address the reduced levels of business activity and we are determined to use this time of change to concentrate our efforts on our clients’ needs.”

The bank made an operating loss of $17.6 million and had to increase its provisions for loan losses by s37.sM'in the last quarter of 1988. The losses contributed to a $82.7M loss for the quarter reported by parent company NZI Corporation.

Under the new structure two NZI Bank regional offices will be in Auckland with others at Hamilton, Wellington and Christchurch. Thirteen other branches will be reduced in size throughout the country and in all about 50 positions will be made redundant.

Mr Hamilton said the NZI Bank would continue to run a national network, but in some areas would operate out of the offices of NZl’s fire and general insurance business. This would substantially reduce overheads, he said.

Mr Hamilton said staff were told of the changes earlier yesterday and all clients had been advised by letter. “We believe these changes will enable us to continue to provide a personalised service while addressing the need to maintain a cost effective operation,” said Mr Hamilton.

“In most cases this will simply involve staff relocating to another floor in the same building and the operation will still be managed by the same personnel,” Mr Hamilton said in a statement.