Bank of Tokyo-Mitsubishi to reduce branches by 10-20 pct

October 29, 2017

TOKYO- Bank of Tokyo-Mitsubishi UFJ plans to cut the number of branches in Japan by 10 pct to 20 pct from the current some 480, informed sources said Sunday. In the past 10 years, the bank saw the number of customers visiting its branches decline by about 40 pct.

It intends to reduce the branch operation cost for recovery of its earnings, which have been hit by drops in long-term interest rates, the sources said, adding the branch reduction will be included in its new three-year business program starting next April.

The core banking unit of Mitsubishi UFJ Financial Group Inc. has already unveiled a plan to slash jobs being done by 9,500 employees in Japan, or 30 pct of its domestic workforce, while increasing digitized, unmanned outlets and opening offices specializing in asset management services.

Among other Japanese megabank groups, Mizuho Financial Group Inc. is considering cutting around 19,000 domestic jobs in some 10 years to cope with the low-interest rate environment, created by the Bank of Japan's unprecedented accommodative policy. Jiji Press