National Australia Bank Profit Rebounds, Dividend Steady


The result was up 2.5% from 2015-16's $6.483 billion and was struck after a modest 2.7% rise in revenues to just over $18 billion.

National Australia Bank has announced it will slash 6,000 jobs over the next three years.

The bank is expected to announce restructuring costs relating to the redundancies of between AU$500m and AU$800m in first half results early next year.

"As transactions move to digital channels - and this is driven by our customers - we will need fewer people", Mr Thorburn said.

The aggressive restructuring comes amid a global push by banks to eke out better returns through tight control of costs and replacing staff with improved technology.

The job losses will cut across all section of NAB's workforce, but will be mitigated by a recruitment drive that will see 2000 new roles created for people with distinct skills in data sciences, AI and robotics automation.

Thorburn highlighted the bank will happily retrain those who have the aptitude and commitment to do so, though he said that numerous job cuts will be in more "traditional" areas of the bank.

The bank's outlook remained positive as it forecast an upturn in business investment and government spending.

Like the country's other major banks, NAB has moved to tighten its focus on its core franchises in Australia and New Zealand and shed capital-intensive operations to tackle a sluggish revenue environment and more recent signs a booming property market has begun to cool in big cities including Sydney.

Cash earnings-a measure that strips out sold businesses, treasury shares and other items-rose by 2.5% to A$6.64 billion for the fiscal year, meeting expectations.

"We have a clear plan to deliver for our customers". The overhaul comes with the bank's net profit bouncing back in the year to September 30 from only AU$352 million in the previous corresponding period when it took a hit from writedowns for loss-making assets.

That makes a steady full year payout of $1.98 a share and follows the decision by the ANZ next week to leave its dividends unchanged for the final half and full year.