NAB announces 6000 jobs to be cut amid $5.3 billion profit

Cash profit - the bank's preferred measure that strips out one off gains and losses - was up a more modest 2.5 per cent to a record $6.6 billion.

Up to 6,000 jobs will be axed in a major restructuring at National Australia Bank, the lender said yesterday after posting AU$5.28 billion in annual net profits.

Technology has forced the company to re-evaluate its workforce, NAB chief executive Andrew Thorburn - who earns a salary of $6.7 million - said on Thursday.

"This will result in a net reduction in staff now targeted at approximately 4,000 by the end of full year 2020", it said.

"Throughout this process we will treat our people with care and respect and equip them for the future", NAB said in a statement.

In doing so, Thorburn announced a NAB initiative called "The Bridge" to assist those made redundant in finding future employment.

"We will now deliver a further $25 million of annualised recurring cost savings from headcount reductions, which will commence in the 2018 financial year", he said.

Thorburn highlighted the bank will happily retrain those who have the aptitude and commitment to do so, though he said that numerous job cuts will be in more "traditional" areas of the bank.

The $5.3 billion net profit announced by the NAB increased by more than 1,400 percent on 2016, while redundancies are expected to cost the bank up to $800 million.

In terms of branches, it's going to be investing in the "fast-growth urban corridors in western Sydney and Melbourne" and he says it's going to be opening ten new branches in those areas.

The rebound was largely expected as last year's $352 million profit was dragged down by the loss-making sales of the bank's United Kingdom and life insurance businesses.

The CEO also announced changes to the executive team with Anthony Healy, now Managing Director and CEO of Bank of New Zealand, appointed Chief Customer Officer - Business and Private Banking. "And I think it's important we face into that and we have a clear plan and we talk with our people about it". Healy will swap roles with Angela Mentis who will take over at the Bank of New Zealand.

  • Eleanor Harrison