National Australia Bank (NAB), Australia’s biggest bank by assets, said it would shut 100 branches in the UK and cut 2,500 jobs in Australia, in an attempt to recover from a trading scandal.

Earlier, NAB reported a 12.5% drop in first-half cash earnings. Despite earnings drop, the bank plans to expand its operations in the south east of England.

NAB will probably shut down 100 branches in the UK and cut 1.700 jobs there. The bank owns Clydesdale and Yorkshire banks in the UK. Clydesdale Bank will lose 60 of 217 branches and Yorkshire will lose 40 sites.

NAB is still in the process of recovering from the trading scandal of 2004 when the bank had currency dealing losses of $184m (£98m). NAB is still under scrutiny of Australian regulators.

Another reason for cutting jobs is growing competition with Commonwealth Bank of Australia and Westpac Banking.