Australia's biggest bank, National Australia Bank (NAB), is to lay off 2,050 staff as part of a major restructuring.

Chief executive Frank Cicutto said the job losses would occur after investments in new technology streamlined the firm's administration needs.

The group is hoping to save itself 370m Australian dollars (US$196m; £137m).

The changes come out of a new strategy review - Positioning for Growth - aimed at revitalising the company.

NAB is the largest financial services institution listed on the Australian Stock Exchange, and Australia's oldest bank.

UK focus

"The changes announced today allow us to make the investments to capture growth opportunities whilst maintaining our earnings momentum," Mr Cicutto said.

The new strategy underpins NAB's growth forecast of better than 12% cash earnings per share growth in 2003 and 2004.

"It was the most comprehensive review of our business we have undertaken and I am convinced the National will be an even better organisation as a result," he said.

The bank confirmed last week that it would close 56 rural branches around Australia.

But while domestic operations are being cut back, the bank is expanding its UK businesses.

It will invest Aus$90m on expanding its wealth management operation in the UK and Aus$95m upgrading IT systems at its Yorkshire and Clydesdale banks.