NAB is cutting 6000 jobs by 2020 as it looks to save $1 billion

Andrew Thorburn, National Australia Bank (NAB) Group Chief Executive Officer. Photo: SAEED KHAN/AFP/Getty Images

The National Australia Bank (NAB) will shed 6000 jobs by 2020 as technology increasingly automates the banking sector.

Releasing its 2017 full-year results today, CEO Andrew Thorburn said the bank was accelerating its customer strategy and will look to make $1 billion in savings as they “simplify” the business.

“This involves an estimated $1.5 billion increase in investment by the end of FY20 to further improve the experience for our customers, reshape our workforce and grow our bank,” he said.

“Cost savings of greater than $1 billion are targeted by the end of FY20 as we further simplify our business.”

NAB’s full-year net profit was $5.3 billion, a 1400% improvement on FY16’s $352 million, when the bank was forced to take a hit on the sales of its underperforming British and insurance businesses.

The full-year dividend is $1.98 per share.

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

Thorburn said the FY17 result “represents another year of consistent delivery”.

“Cash earnings and revenue are up, asset quality is a highlight again, and we have further strengthened our balance sheet,” he said.

While 6000 positions will go, 2000 new roles will be created for a net loss of 4000 jobs.

The bank says the changes “will result in a net reduction in staff currently 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 “throughout this process we will treat our people with care and respect and equip them for the future”.

The CEO also announced changes to the executive team with Anthony Healy, currently Managing Director and CEO of Bank of New Zealand, appointed Chief Customer Officer – Business and Private Banking.

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.

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