So much for the notion that falling branch numbers and rising use of Artificial Intelligence are hitting bank employee numbers. Not so. In the year to end June, total FTEs at the largest US banks rose by 4%. Douglas Blakey writes
Employment levels at the major US banks are holding up resiliently, and actually rose by 4% in the year to end June 2017.
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A number of US banks have been active in ramping up strategic hires in key areas such as City National. Employee numbers rose by 12% at City National as it strengthens its key target segments in the entertainment and sports sectors. Notable hires include executives to service the music hubs of Nashville and Atlanta.
City National has also been active in growing its footprint in the US with the opening of its first full-service regional banking centre in Minneapolis, the first co-branded banking office for the bank since it was acquired by Royal Bank of Canada in November 2015.
Wells Fargo remains the largest bank by employees and actually increased full-time employees (FTEs) by 2% in the past year to almost 239,000.
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By GlobalDataFTEs rose by 8% at Citi at a time when its branch network shrank from 758 to 719 outlets. Citi ended the first half with more than 175,000 FTEs; prior to the crisis it employed more than 240,000.
Employee numbers also rose by 8% last year at Capital One, a year when its branch network was reduced by a net 146 outlets to 665 units, a drop of 18%.
PNC accelerated its branch right-sizing programme, shrinking its network by almost 5% to 2,561 units, a net reduction of 126 outlets but total employee numbers rose by 345 FTEs in the same period.
By contrast, Bank of America has continued its cost-cutting strategy. BofA has been on a mission to control expenses and streamline its retail banking operation. Not only did it sell its international consumer credit card unit, it reduced its branch network to 4,604 outlets in the year to end June from 4,764 a year earlier. As recently as 2011, BofA operated 5,856 branches in the US.
Total FTEs at BofA declined by almost 5,000 in the year to end June, a reduction of 3.3%. In June 2008, BofA employed more than 191,000 FTEs. But bar BofA, employee numbers rose at almost every major US bank in the past year.
