CANBERRA: National Australia Bank said it would cut a net 4,000 jobs – about 12 per cent of its workforce – on Thursday as it seeks to automate and simplify its business by investing in new technologies. The Australian lender announced the job cuts as it reported a cash profit after tax of A$6.64bn in full year 2017, a rise of 2.5 per cent on the previous year. The performance was boosted by growth in home and business lending and stronger markets and treasury income. “We are reshaping our workforce to enable us to deliver for our customers and by full year 2020 expect to create up to 2,000 new jobs while about 6,000 roles will be impacted as we further automate and simply our business,” said NAB in a statement. The net reduction in employees numbers will give rise to a restructuring provision of A$0.5-0.8bn in the first half of 2018, said the bank.
NAB’s net interest margin fell 3 basis points in the 12 months to end September, compared to the same period a year earlier. Net operating revenues grew 2.7 per cent to A$17.89bn. UBS analysts said the result was “solid” but the bank had flagged higher than expected costs in coming years. “Guidance would imply 2020 costs are $135m to $365m above current forecasts, which represents 1.5% to 4% of NPAT. Management expects this to be offset by stronger revenue, but the market may not incorporate revenue upside until there are signs of delivery,” said UBS in a note to clients.
