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NAB to slash 4000 jobs after posting $6.6b profit

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National Australia Bank has lifted full-year cash profit 2.5 per cent to $6.642 billion and will cut 4,000 jobs over the next three years as part of a $1.5 billion restructure.

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The bank said today cash profit for the 12 months to September 30 rose from $6.483 billion a year earlier on the back of a 2.7 per cent rise in revenue – with growth in both housing and business lending.

Statutory profit rose from 2016’s impairment-heavy $352 million to $5.285 billion, with the overall result in line with analyst expectations.

But expenses rose 2.6 per cent and NAB said it will reduce its head count as part of a restructure that will save more than $1 billion in costs by the end of the 2020 financial year.

“We are reshaping our workforce to enable us to deliver for our customers and by FY20 expect to create up to 2,000 new jobs while about 6,000 roles will be impacted as we further automate and simplify our business,” NAB said in a statement.

“This will result in a net reduction in staff currently targeted at approximately 4,000 by the end of FY20, which is expected to give rise to a 1H18 restructuring provision of $0.5-0.8 billion.

“Throughout this process we will treat our people with care and respect and equip them for the future.”

Chief executive Andrew Thorburn said he expects the business and private banking units to be most affected, but that no targets had been set.

NAB expects to make a one-off impairment as a result of the restructure of between $500 million and $800 million in the first half of the 2018 financial year.

Nonetheless, NAB said, there should be no cut to its dividend for at least the current financial year.

NAB held its final dividend flat at 99 cents, fully franked, taking it to a full-year payout of $1.98.

NAB’S NUMBERS

Cash profit up 2.5pct to $6.642b

Net profit $5.285b v $352m

Net operating income up 2.7pct to $17.895b

Final dividend flat at 99 cents, fully franked

– AAP

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