National Australia Bank axes 6,000 jobs
Up to 6,000 jobs will be axed in a major restructure at National Australia Bank, the lender said Thursday after posting Aus$5.28 billion ($4.1 billion) in annual net profits.
The positions will go as it further automates and simplifies its business. Some 2,000 new jobs will be created.
“This will result in a net reduction in staff currently targeted at approximately 4,000 by the end of full year 2020,” it said. The bank currently has 33,600 employees.
The overhaul comes with the bank’s net profit bouncing back in the year to September 30 from only Aus$352 million in the previous corresponding period when it took a hit from writedowns for loss-making assets.
These included spinning off British bank Clydesdale and most of its life insurance business to Japan’s Nippon.
Cash profit, the financial industry’s preferred measure which strips out volatile items, was up 2.5 percent at Aus$6.64 billion, in line with expectations.
The bank paid a dividend of 99 cents, matching what shareholders received in the first half of the year.
Bad and doubtful debt charges rose 1.3 percent to Aus$810 million, while revenue was up 2.7 percent.
Chief executive Andrew Thorburn said he was “optimistic” about the future after divesting low returning business like Clydsdale and Great Western banks.
“Cash earnings and revenue are up, asset quality is a highlight again, and we have further strengthened our balance sheet,” he said.
“We have made strong progress over the past three years and now we announce an acceleration of our strategy.”