Morrison calls for NAB to explain job cuts

National Australia Bank Profit Rebounds, Dividend Steady

The job losses over three years were announced as the bank revealed a full year net profit of $5.3 billion.

The positions are to go as the bank further automates and simplifies its business to reshape for a digital future, while about 2,000 new jobs are to be created, it said.

"This will result in a net reduction in staff now 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".

Cash profit, the financial industry's preferred measure, which strips out volatile items, was up 2.5 percent at A$6.64 billion, in line with expectations.

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

NAB Chief Executive Andrew Thorburn cited digital banking as the reason.

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.

While net interest margin, a key gauge of profitability, fell 3 basis points from a year ago, it was 6 basis points higher in the second half of the 2017 results, as the lender benefited from a repricing of its mortgage book. The Bridge will actually help people out of our company across a bridge into new employment. "We move forward with confidence and a objective to "back the bold" who move Australia forward".

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.

While new bank branches will open up in growing areas like western Melbourne and Sydney, some will be forced to close.

He replaces Angela Mentis in a job swap, as she takes over Healy's old BNZ role, Managing Director and CEO of Bank of New Zealand. "And I think it's important we face into that and we have a clear plan and we talk with our people about it".

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