By Alice Uribe
SYDNEY--Westpac Banking Corp. is looking at closing 40 branches in Australia as the Covid-19 pandemic accelerates the shift to online banking.
Australia's No. 2 bank by market capitalization is in talks with staff over the proposed closures which could affect 39 branches in metropolitan areas, and one in a regional area, according to a person familiar with the situation.
Westpac is also considering amalgamating locations for its different banking brands in some regional areas, which could affect eight branches, the person told Dow Jones Newswires.
Westpac earlier this month said it is combining its consumer and business operations into one unit. The bank's chief executive Peter King said the consolidation will cut costs through a more efficient utilization of common assets such as branches and call centers.
Westpac said in a statement that it is consulting with staff about the low utilization of branches in metropolitan areas where there is a nearby branch and where customers are preferring online banking.
Julia Angrisano, the Finance Sector Union's National Secretary said a shutdown of branches was a significant concern.
It "will impact on a large number of staff, banking customers and businesses around Australia," she said.
Write to Alice Uribe at alice.uribe@wsj.com
(END) Dow Jones Newswires
03-25-21 2356ET
