Fifth Third Bank has made a major change to its business model, which will see it open a new branch in Sydney’s west with a major focus on the CBD and CBD West.
The bank says it will open up to 20 new branches across Australia in the coming years.
The move comes after the bank was forced to lay off 200 staff last year after the global financial crisis, which resulted in an almost $20 billion writedown in the Australian economy.
“The decision to shift our business model from a fifth-quarter dividend to a fifth third dividend, as we have done with our core businesses, is a strategic and long-term move to build a sustainable business, strengthen our position and attract new talent to the bank,” Fifth Third Chief Executive Mark Broughton said in a statement.
“With the increased interest from businesses in the CBD, including commercial real estate and hospitality, we believe this will give us the flexibility to deliver our long-running growth plan for the future.”
Fifth Third says the new branch will open on February 1, 2019, and will focus on a number of sectors.
Broughston said the bank had not yet set a date for the opening, but it had made an initial investment in the branch.
“We are committed to providing a positive, positive environment for our customers and we are building a new, better bank, a bank for tomorrow,” he said.
Brought back from the dead The new bank will be located in the historic Melbourne CBD and will employ about 250 people.
The decision to bring back Fifth Third into the banking industry comes as the banks biggest shareholder, ANZ, prepares to sell off its stakes in the bank.
ANZ’s shareholding of Fifth Third dropped from $1.1 billion to $1 billion last year.
Five years ago, the ANZ owned a 51.5 per cent stake, and a 49.5% stake was transferred to Bankwest, a joint venture of Australian Financial Holdings and Bank of Queensland.
The ANZ was one of the investors in the new bank.
“This is a significant strategic shift for the bank, and we welcome the opportunity to grow and grow the business further in the future,” ANZ chief executive officer James Ashworth said.
Fifth Third has been a major beneficiary of the banking crisis, thanks to its strong commercial realisation and commercial banking services. “
These new branches will help meet the increasing needs of our customers by providing the right level of services and offering a greater range of banking products and services to meet the growing needs of today’s businesses.”
Fifth Third has been a major beneficiary of the banking crisis, thanks to its strong commercial realisation and commercial banking services.
However, the bank has had to lay-off employees as it struggled to make a profit.
It was the only major bank to have its bank of the future fund wiped out in Australia.
The closure of Fifth Point Bank in January, after the financial crisis hit, also led to the closure of other banks in Australia, including Westpac.
Five Third has since found ways to make up for lost ground.
The company’s commercial realisations have been hit hard by the recession and the fact that it has had difficulty attracting staff.
The banks most profitable asset is its commercial realises, which are the profits that its clients earn when customers deposit and withdraw money.