CAM Bank to Close 122 Branches

Caja Mediterráneo (CAM) is continuing with its cost reduction plans, to be implemented this year, which will result in the closure of a total of 122 branches, 27% of their total network. The bank are confident the implementation of its recapitalisation strategy will yield “rather positive results”.

These cost reduction measures will see the closure of 1 in 4 of CAM’s branches during 2011, six months sooner than the official forecast. Fifteen closures have already been implemented to date.

Regarding staffing, the organisation said that since the approval of the redundancy plan (ERE) in June, they have already produced a reduction equivalent to 37% of the plan for 2011.

They also highlighted that as far as recurring overheads are concerned, the measures initiated during the second quarter of the year will allow a reduction of five points above the recapitalisation plan target for 2011, making the percentage reduction around 16%, excluding extraordinary items.

The Intention is to Save more than 200 Million Euros

The board of directors of Caja Mediterráneo approved the submission of their recapitalisation plan to the Bank of Spain late April and as a result, from now until the year 2015, it is projected the efficiency ratio will improve up to 50%, resulting in recurring savings of more than 200 million euros and profit levels above 15%.

As reported in El Mundo, the bank said that in developing the plan they “have been mindful of the new competitive environment and foreseeable market developments over the next five years, as well as regulatory requirements for solvency and liquidity.”

Thus, the approved plan “includes the development of various initiatives on operational restructuring and cost cutting measures designed to place the productivity and efficiency of the Bank at levels required in the new competitive and regulatory climate.”

Almoradi

This is another blow to the financial and Spanish economy. According to the Cam bank they will be making 6,500 redundancies due to the streamlining of the organisation, this will be from 2011-13.
When are things going to get better as it seems to be going on for ever.

Commented chrishenrick in Almoradi 2011-07-22 08:38:40 UTC

It does not sound very encouraging for the future. Really hope they get their act together and start to create more work for everybody.

Commented js424400 in Almoradi 2011-07-22 10:18:21 UTC

In my job I meet many diverse clients from various nationalities and unfortunately the ones that are struggling are the Spanish and to an extent the British as the euro has taken a bashing. The more affluent countries are all the scandanavian ones, Germany, France, Switzerland and Belgium the remainder seem to be suffering quite badly.
Sadly I cannot see any change for at least another couple of years minimum.

Commented john in Quesada 2011-07-22 13:28:36 UTC