Fifth Third Bancorp has confirmed that it is planning to close or sell about 100 of its 1,303 branch offices in 2016 as customers are increasingly shifting toward mobile banking.
The lender has also abandoned plans to open 30 new branches.
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The move is expected to cost the bank between $75m and $85m in impairment charges during the second quarter. There will be $6m to $10m in costs related to terminating real estate contracts.
The changes, expected to be fully executed by mid-2016, will result in annualized reduction of about $60m in ongoing operating expenses, Cincinnati-based Fifth Third Bancorp said in a statement.
Fifth Third Bancorp vice chairman and CEO Kevin Kabat said: "Consumer demographics and our customers’ preferred channels of banking are undergoing significant changes.
"Technology continues to impact our service delivery and revenue generation tactics and strategies. We have been very successful in growing our market share in our footprint as the most recent FDIC data clearly shows, and we will continue to maintain the same focus going forward by optimizing the size and density of our branch network."
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