Raiffeisen will close the branches in the fourth quarter, after the settlement of foreign-currency loans is completed, said Heinz Wiedner, head of the bank’s Hungarian operations.

The Austrian-owned lender will maintain a presence in Budapest and larger cities and in regions with higher economic growth.

In job cuts to be carried out this year, the number of employees will fall to 2,200 from today’s 2,530.

Raiffeisen expects to shave 20% from its costs annually, or Ft 10 billion, one-third of which would come from lower wage costs.

These measures will guarantee profitable operations in years to come, said Wiedner.

As part of its shift in strategy, the bank will concentrate on private banking and corporate clients. It also aims to enhance its electronic banking services.

Source: Hungary Around the Clock

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