Banks cut 5,500 branches across the European Union last year, 2.5 per cent of the total, leaving the region with 20,000 fewer outlets than it had when the financial industry was plunged into crisis in 2008.
Last year’s cuts came after 7,200 branches were axed in 2011, according to data from the European Central Bank.
Banks across Europe have been closing branches in a bid to trim operating costs and improve their battered earnings.
Consumer take-up of online and telephone banking services has accelerated the trend. The data show EU banks cut 8 per cent of branches in aggregate in the four years to the end of 2012, leaving 218,687 branches, or one for every 2,300 people.
Last year’s sharpest cuts were largely contained to the embattled periphery. Crisis-stricken Greece saw one of the biggest contractions in 2012, shedding 5.7 per cent of its outlets, as mergers of local banks led to 219 branch closures.
The trend is expected to continue into 2013 as Piraeus shuts some of the 312 branches it snapped up from stricken Cypriot lenders in March.
Spain, where massive loan losses have put banks under fierce pressure to cut costs, lost 4.9 per cent, or 1,963, of its branches in 2012.
Ireland
Ireland's branch network contracted by 3.3 per cent and is expected to shrink again in 2013, while Italy's network was 3.1 per cent smaller by the end of the year.
Branch numbers were on the rise in some eastern European countries including Poland (up 4 per cent), the Czech Republic (up 2.3 per cent) and Lithuania (up 1.8 per cent). In Britain, the ECB data showed the number of branches remained relatively unchanged at 11,870. – (Reuters)
