Despite profit rise in line with expectations, expenses rose 2.6% and the bank says it will reduce head count in restructure

This article is more than 2 years old

This article is more than 2 years old

National Australia Bank has lifted its full-year cash profit 2.5% to $6.642bn but it will cut 6,000 jobs over the next three years as part of a $1.5bn restructure.

The lender on Thursday said cash profit for the 12 months to 30 September rose from $6.483bn a year earlier on the back of a 2.7% rise in revenue – with growth in both housing and business lending.

Statutory profit rose from 2016’s impairment-heavy $352m to $5.285bn, with the overall result in line with analysts’ expectations.

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But expenses rose 2.6% and NAB said it would reduce its head count as part of a restructure that will save more than $1bn in costs by the end of the 2020 financial year.

There will be a loss of 6,000 jobs over three years but the bank’s chief executive, Andrew Thorburn, said the net loss would be closer to 4,000 as 2,000 new digitally focused positions will be created.

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

Thorburn said he expected the business and private banking units would 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 $500m and $800m 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.