NAB shares are taking a hit

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Shares in NAB fell sharply after the bank released its full year results.

A short time ago, they were down almost 2.9% to $31.93.

NAB’s cash profit rose 2.5% to a record $6.6 billion, in line with expectations.

And the bank announced it will shed a net 4000 jobs by 2020 as technology increasingly automates the banking sector.

But the NAB also forecast a 5% to 8% rise in costs in the current financial year plus another $500 million to $800 million restructuring provision to be taken in the first half.

UBS says the result is solid but the market will focus on the increased expenses.

The guidance implies 2020 costs are $135 million to $365 million above current forecasts, which represents 1.5% to 4% of net profit after tax.

“Management expects this to be offset by stronger revenue, but the market may not incorporate revenue upside until there are signs of delivery,” says UBS in a note to customers.

NOW READ: This is why NAB shares fell because of plans to cut 4000 staff

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