Fifth Third Bancorp (Nasdaq:FITB) Wants More Efficiency, Job Cuts Coming?

While some of the larger banks have been doing a little hiring, many of their smaller counterparts like Fifth Third Bancorp (Nasdaq:FITB), are focusing on improving efficiencies, which almost always means job cuts on the way.

Since January 1, smaller banks have been cutting jobs, and with Fifth Third Bancorp's announcement Thursday they want to become more efficient, it appears cutting jobs will have to be part of their strategy.

With government regulations cutting into former revenue of banks, there are few avenues left to bring their efficiency ratios down, other than cutting costs. Some of the fees added to checking accounts will help some, but that's only going to move the needle a little bit.

For Fifth Third, their efficiency ratio soared to over 70 percent during the worst of the crisis, according to Chief Financial Officer Daniel Poston. The goal is to get in back in the 50s.

Poston said this on jobs and efficiencies: "Our bias right now would not be for extensive cost cutting. We will continue to focus on efficiencies, but it probably wouldn't manifest itself in a head-count reduction that has a big headline associated with it."