70% of bank bosses to cut staff

Almost three quarters of UK bank bosses expect to implement cost-cutting measures during the next 12 months, according to a new report.

The survey, conducted by PwC, also found that nearly one third of Chief Executives would expect a headcount reduction in the next year. The cost reduction schemes come as stunted revenues and low interest rates continue to negatively affect the sector, according to City AM.

Ian Gordon, Investec Banking Analyst, explained the situation in an interview with City AM, saying: The revenue outlook has undeniably deteriorated in recent months, mostly down to weak loan growth and increased margin pressure through low interest rates.”

However, Simon, Hunt, Banking and Capital Markets Leader, explained that the measures were also caused by an increased number of cyber-attacks and fears over a changing tax regime, according to City AM.