NAB to cut 4000 jobs despite $6.6 billion profit

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National Australia Bank has lifted its full-year cash profit to $6.642 billion, from $6.483 billion a year ago, but is still cutting 4,000 jobs.

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.

The lender on Thursday said 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.

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

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
Source AAP - SBS

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