ANZ will consolidate its overlapping branch networks in New Zealand over the next two years as the bank retires the National Bank brand it acquired in 2003 as part of the takeover of National Bank of New Zealand.The bank put the cost of the investment in branch consolidation at NZ$100 million. It has already spent NZ$244 million on adapting the core banking system of National Bank to service the amalgamated offering of the two banks.ANZ said its branch network will fall to around 280 from the present 300. Around 35 branches will be closed, however 15 new branches are also planned.This latter group of branches will help lift the reach of the bank's branch network to 90 per cent of the New Zealand population, up from 75 per cent now.The combined investment in the IT overhaul and the branch rollout is equal to around three months' profit for the bank's New Zealand division. Dispensing with the National Bank brand will not affect the NZ$3.3 billion in goodwill on the bank's balance sheet.Around 200 IT contractors will be out of work, as projects connected with extension of the National Bank's Systematic platform to ANZ are completed.ANZ began informing customers some weeks ago of changes to products and pricing linked to the shift to the alternative banking system.