THE Colchester and Clacton branches of the Norwich and Peterborough Building Society are to close after a cost-cutting review.

Bosses are shutting a total of ten out of their 56 branches, blaming the “dismal” condition of the financial markets for hitting profits.

Four staff at Colchester and six at Clacton will be out of a job, but the society says it hopes to redeploy some or all of them elsewhere.

The Colchester branch in Culver Street West has 7,500 customers, but only 70 visit on a weekly basis.

The picture is similar at Clacton, with 7,200 customers and 218 regulars.

Norwich and Peterborough spokesman Alison Rolls said: “We hope the vast majority of customers will stay with us and use our postal, telephone or internet services.”

Ron Waters, 58, who has banked with the society for almost a decade, said it was a major blow.

“The service they give there is absolutely excellent,” said the retired telephone engineer, of Coppins Road, Clacton.

“They are friendly and know you by name – you’re not just a ticket or a number.

“I’m on first-name terms with them too. They are like an extended family.”

Mr Waters added: “I’m just shocked. This is another business biting the dust.”

The society’s chief executive, Matthew Bullock, said the closures were unwanted as it regarded its branches as the best way of serving its members.

But, he added: “Having made significant cost efficiencies at our head office in Peterborough, and with our income this year markedly down and looking set to reduce further next year, we have had to make this very tough decision to include the branch network in our cuts.”

The society said maintaining the branch network was its biggest expense.

Clacton, Colchester and also the branch in Chelmsford are among those selected for closure.

The society said it had decided to “retreat” to its Norfolk and Cambridgeshire heartland, where it has most members. Those branches chosen for closure will be shut on March 5 next year.