NAB to simplify operations via job cuts

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NAB's cash profit, without one-off items, rose 2.5% to a record $6.6 billion, in line with expectations.

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.

The bank says the changes "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".

Thorburn said he was "optimistic" about the future after divesting low-returning business like Clydesdale and U.S. subsidiary Great Western Bancorp.

NAB is following in the footsteps of Nordea Bank and Japan's Mizuho Bank, both of which announced job cuts this week.

NAB CEO Andrew Thorburn said in this morning's earnings release that the bank's results "represents another year of consistent delivery".

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

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'What we are not saying is that 6,000 are going here and here and here, it will be done over three years'.

"Detail is light on how the bank has determined that 6,000 jobs are to be cut, and where and when", Angrisano said in a statement. Its net interest margin, a profit measure based on the difference between the rate at which a bank borrows and lends, contracted by 0.03 percentage point to 1.85%, although it widened by 0.06 percentage points in the second half of the fiscal year.

At the same time, Thorburn announced the opening of 10 new branches in "fast-growth urban corridors" or western Sydney and Melbourne.

The 2016 profit of $352 million profit was primarily the result of the NAB's sales, at a loss, of its 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.

"The leadership changes are a great opportunity for two of NAB's talented executives to take our strategy forward".

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