Sales of insurance products have been a positive for Westpac in the June quarter as it warns of further job cuts.

Westpac CEO Gail Kelly says the level of sales “has been particularly pleasing”.

“During the past 12 months, we have experienced the biggest increase in cross-sell of the major banks.”

She says BT Financial Group had also reported lower general insurance claims during the June quarter.

But with sales of other bank products such as mortgages slowing down during the quarter, Ms Kelly has warned of further jobs cuts.

“Operational efficiency remains a key area of focus while our business momentum and strong balance sheet demonstrates real organisational strength,” she said.

“We know that in this environment we need to be even more vigilant around expenses.” Ms Kelly says “a new round of productivity initiatives “ were begun during the quarter to maintain profitability.

It is expected middle management at the bank and its subsidies will be in the firing line with possibly more than 1000 positions to go from its Sydney head office.

“Head count unfortunately is a moving feast,” Ms Kelly said. “I think staff numbers will come down this year and come down again somewhat next year.”