Subscribe
NAB books $6.1b profit weeks after axing 2500 jobs
The National Australia Bank has booked a $6.1 billion profit, down 13.4 per cent, weeks after announcing it was cutting 2500 roles from its workforce.
- NAB has reported a cash profit of $6.1 billion, down 9.1 per cent on the prior year.
- The result was well below analyst expectations, and comes weeks after the bank announced it was cutting 2500 jobs.
- The bank declared a final dividend of 85 cents per share, fully franked.
The National Australia Bank (NAB) has booked a $6.1 billion profit, down 9.1 per cent, weeks after announcing it was cutting 2500 roles from its workforce.
Announcing its full-year results this morning, the big four bank said it was facing a “challenging environment.”
“Australians continue to show resilience in a slowing environment,” CEO Andrew Irvine said.
“Underlying profit, excluding the large notable item announced at the half, increased 6.9 per cent and revenue grew 5.8 per cent. Costs were up 4.5 per cent and NIM improved.
“The Board declared a final dividend of 85 cents per share. This brings total dividends to $1.70 and returns billions of dollars to our shareholders and millions of Australians who own NAB shares through their superannuation.”
The result, while showing a strong second half, was well below analyst expectations.
Earnings excluding notable items were $7.1 billion, flat on the previous year.
In its results the bank said it now expects interest rates to remain at the current level of 4.85 per cent “for a while,” but unemployment to spike up to 5.5 per cent by early 2028.
Irvine addressed recent news that the bank was cutting 2,500 jobs, saying the bank needed to change to address the fall in economic growth.
“These are difficult decisions that impact our colleagues – and we are treating them with care, with dignity and with respect,” he said.
“This will better position NAB to respond to customer expectations, to rising competition and to rapid technological change, as well as to navigate a softening economy.
“The actions we’ve taken reflect our expectation of a tough year ahead.”
Some 1,500 of the 2,500 jobs being cut from the banks were due to be gone by Christmas, but the bank has deferred negotiations until late January 2027 after intense backlash from union delegates.
Forced redundancies will now take place on January 27 next year, and worker consultation has been deferred to November 11 this year.
“Today NAB is celebrating billions in profits, but just weeks ago Andrew Irvine was preparing to throw 1500 workers out of their jobs right before Christmas,” Finance Sector Union National President Wendy Streets said.
“But delaying redundancies is not the same as saving jobs.
“NAB still intends to cut 2,500 positions, and we remain deeply concerned about the impact on workers, their families and those left behind to manage growing workloads.
“A bank making billions in profit can afford to invest in its people rather than discard them. We will continue fighting for every job and holding Andrew Irvine accountable.”