National Australia Bank posts record FY cash profit, to slash jobs


The National Australia Bank has announced the loss of 6,000 jobs over the next three years due to an increasing number of transactions moving towards digital channels.

Mr. Thorburn said the bank planned to increase investment by A$1.5 billion by the end of the 2020 fiscal year to grow the bank and reshape its workforce, and was targeting cost savings over that period of more than A$1 billion.

Since taking over as chief executive in late 2014, Andrew Thorburn has spun off and listed CYBG PLC (CYBG.LN), a company housing Clydesdale and Yorkshire Bank in the United Kingdom, sold an 80% stake in its insurance arm and also listed regional US lender Great Western Bancorp Inc.

However, the bank said expenses had risen 2.6 per cent.

"Having said that, we're hiring 2,000 people with different capabilities: data scientists, AI, robotics, automation, technology people, digital people, so the net will be 4,000 and that's just a reshaping that's going to happen".

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

NAB shares were down 3 percent in early trading on Thursday in a flat market.

Now chief customer officer - business and private banking at NAB, Ms Mentis was formerly executive general manager of the bank's private wealth business and has been a director of Bank NZ since December 2016.

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"We think an environment where housing credit is slowing, business credit starts to pick up".

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

The $5.3 billion net profit was up more than 1,400 per cent on the wafer-thin effort of 2016.

The full-year dividend is $1.98 per share.

Bank of New Zealand's annual earnings rose 7.9 percent as the lender's expanding loan book fattened income at skinnier margins while the dairy sector's recovery this year cut bad debt charges.

"Result was solid and the NIM stronger than expected, but the market will focus on the flagged cost guidance", UBS analysts Jonathan Morr and Rachel Bentvelzen said in a note.

The news spooked investors, causing the share price to fall by 92 cents, or 2.8 per cent.