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November 2, 2017

NAB annual cash profit rises 2%; announces 6,000 job cuts

National Australia Bank (NAB) has reported cash earnings of AUD6.64bn ($5.1bn) for the year ended 30 September 2017, a rise of 2% compared to AUD6.48bn ($4.9bn) a year ago.

The banking group’s annual net profit attributable to owners was AUD5.3bn, a huge surge compared to AUD352m last year when profit was hit by sale of its UK and life insurance operations.

Net operating income was AUD17.89bn, an increase of 3% over AUD17.43bn in the previous year.

Cash earnings at the banking group’s Consumer Banking and Wealth division rose 4% to AUD1.63bn from AUD1.56bn last year. In the Business and Private Banking unit, cash earnings increased 6% year-on-year to AUD2.84bn.

NAB Group CEO Andrew Thorburn said: “Our FY17 result represents another year of consistent delivery. Cash earnings and revenue are up, asset quality is a highlight again, and we have further strengthened our balance sheet.”

In addition, the bank announced plans to axe 6,000 jobs over the next three years in response to increasing adoption of digital channels.

However, the bank also said that it will create 2,000 new roles, which will lead to a net reduction of 4,000 jobs. The bank also revealed plans to invest AUD1.5bn over three years to support its digital transformation.

“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. 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,” NAB said in a statement.

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