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Tag: NAB

  • National Australia Bank to Cut 2,500 Jobs as Lending Slows

    National Australia Bank to Cut 2,500 Jobs as Lending Slows

    National Australia Bank will cut up to 2,500 jobs across its corporate operations in 2027 to lower operating costs as loan demand weakens. The reduction represents roughly 6 percent of the lender’s global workforce.

    Up to 1,500 positions will disappear by the end of 2026. The lender plans to spare customer-facing branch and banking roles while heavily reducing its reliance on outside consultants and contractors.

    The Cost of the Corporate Overhaul

    The restructuring will trigger a pre-tax charge of about A$300 million in 2027. That covers redundancy payouts, redeployment programs, and internal reorganisations. For comparison, pre-tax restructuring charges stood at about A$80 million in each of 2025 and 2026.

    Chief executive officer Andrew Irvine said the changes were aimed at improving productivity, risk outcomes and execution, while making the bank “simpler and more efficient”. NAB reported a total global headcount of 41,880 employees on September 30, 2025.

    Lenders Squeezed by Weakening Loan Demand

    Commercial lenders across Australia face compressed margins as property sales cool and domestic borrowers pull back under elevated borrowing costs. The retrenchment at NAB mirrors steps taken across the Australian financial sector, where institutions are shedding corporate overhead to protect returns on equity.

    Rival ANZ launched its own simplification drive under chief executive Nuno Matos last year, cutting roughly 3,500 roles through September 2026. Both lenders are eliminating administrative layers while trying to preserve frontline lending desks to defend their market share in core commercial accounts.

    Tax Changes and Higher Rates Hurt Housing

    In August, NAB cautioned that residential mortgage growth would decelerate sharply into 2027. Federal property tax revisions reduced buyer appetite, discouraging both owner-occupiers and property investors from taking on new debt.

    Higher domestic cash rates combined with broader geopolitical tensions have created sustained headwinds for retail and business borrowers. Management aims to redeploy cost savings directly into business lending, deposit acquisition, and its proprietary residential mortgage platform.

    Key Targets for the 2027 Deadline

    NAB faces the task of executing the initial 1,500 departures before December 2026 without disrupting risk controls or loan processing times. Progress on contractor reductions and operating expense targets will show in the bank’s upcoming financial disclosures through late 2026.

  • Watchdog Greenlights NAB’s Citi Acquisition in Australia

    Watchdog Greenlights NAB’s Citi Acquisition in Australia

    The acquisition «would not substantially lessen competition,» the Australian Competition and Consumer Commission (ACCC) said on Thursday.

    The competition watchdog in Australia will not oppose the proposed acquisition of Citigroup Australia’s consumer business by National Australia Bank.

    Its review focused on competition in the supply of credit cards, as Citi is a substantial provider of credit cards and credit card services. ACCC also focused on was the provision of «white label» credit card services, as following the acquisition, NAB will be the dominant white label credit card supplier to a number of commercial partners, and will compete with those partners in the consumer-facing credit card market.

    Evidence showed that the proposed acquisition was unlikely to raise competition concerns in any other areas of overlap, given Citi’s minimal market share in these markets, ACCC said in a statement.

    NAB, Australia’s second-biggest bank, said in August it would buy Citigroup Australia in a deal valued at around A$1.2 billion ($880 million).

    The U.S. bank is preparing to exit the region in the face of strong challenges to the old credit card business model from buy-now, pay-later companies.

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  • NAB in Talks to Buy Citi’s Australia Consumer Unit

    NAB in Talks to Buy Citi’s Australia Consumer Unit

    The National Bank of Australia is the latest to join the hunt for Citi’s retail assets after it announced plans for a major consumer downsizing earlier this year.

    NAB is in talks to potentially but Citi’s consumer business in Australia, according to an exchange filing.

    Discussions are ongoing and no deal has been concluded.

    Numerous banks are eyeing opportunities to purchase consumer businesses from Citi’s 13-market exit.

    In Australia, NAB joins the likes of ANZ, ING Bank, Macquarie, Bank of Queensland and local insurer Suncorp. which have also reportedly expressed interest.

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