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UPDATE 1-Standard Bank cuts 2,100 jobs to hold down costs

Published 10/21/2010, 01:17 PM
Updated 10/21/2010, 01:20 PM

* To cut 1,200 permanent jobs, 600 contractors in S.Africa

* To shed 300 jobs in London

* Managers and executives most affected

(Adds details, background)

JOHANNESBURG, Oct 21 (Reuters) - Standard Bank, Africa's largest bank by assets, said on Thursday it aimed to cut 2,100 jobs as it looks to hold down costs due to declining revenues.

Standard Bank said in an emailed statement to Reuters it would cut 1,200 permanent positions and 600 contractors in South Africa and shed a total of 300 permanent and non-permanent jobs in London.

The company, which employs 50,000 people, said revenue pressure would continue during 2011.

"We could not rely on optimistic revenue projections, and we therefore had no option but to carefully re-examine our cost base and the way in which we operate," the bank said.

Banks in Africa's largest economy have struggled as high unemployment and household debt levels have blunted demand for loans and crimped corporate spending.

Standard Bank, 20 percent owned by Industrial and Commercial Bank of China, reported a 9 percent rise in first-half profit in August, helped by a decline in bad loans.

However, net interest income and non-lending revenue -- the two most important earnings measures for a commercial bank -- both declined. (Reporting by Tiisetso Motsoeneng; Editing by Will Waterman)

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