logo
NAB Bets New Business Chief Will Fend Off Competition

NAB Bets New Business Chief Will Fend Off Competition

Bloomberg18-03-2025
National Australia Bank Ltd. is confident that a leadership change in its prized business banking division will fend off increasing competition from local rivals, its chief executive said.
NAB announced Monday that Andrew Auerbach will head up business and private banking, replacing Rachel Slade. 'We're continuing to invest in our leadership position because we know that it's competitive out there and that's one of the reasons that I brought Andrew Auerbach back in,' NAB Chief Executive Officer Andrew Irvine told the Australian Financial Review Banking Summit in Sydney on Tuesday.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

NAB to take A$85m hit this year over staff underpayments
NAB to take A$85m hit this year over staff underpayments

Yahoo

time2 days ago

  • Yahoo

NAB to take A$85m hit this year over staff underpayments

National Australia Bank (NAB) has flagged a financial impact of A$130m ($84.6m) this year, following the discovery of underpayments to its staff. The revelation came as the bank conducted an internal review, which has led to an anticipated 4.5% increase in operating expenses for the current financial year, attributed to the costs associated with the review and remediation process of payroll discrepancies. The bank has issued a cautionary note, indicating that the "payroll review and remediation is ongoing and total costs remain uncertain." The payroll issues in question pertain to various aspects of employment, including job sharing arrangements, rostering, and the calculation of wage and leave entitlements. In response to these findings, NAB is commencing remediation with affected staff members and has initiated a comprehensive review into payroll-related benefits, covering both current and certain past agreements. However, the bank did not disclose the exact number of employees impacted by these payroll errors. NAB group executive of people and culture Sarah White extended an apology to the staff, stating: "Paying our colleagues correctly is an absolute priority. "We are sorry and apologise to our colleagues that this has happened and have commenced remediating those impacted." The bank's payroll problems were initially uncovered in 2019, with an earlier review identifying a shortfall of A$250m over a two-year period. The ongoing review, coupled with the implementation of new human resources and payroll platforms, and the transition of staff to a new enterprise agreement, has brought to light additional issues that were announced today. NAB has committed to engaging with the Fair Work Ombudsman and the Finance Sector Union as part of its efforts to address the payroll concerns. This news has been met with criticism from Wendy Streets, the national president of the Finance Sector Union, who condemned the underpayment as "systemic wage theft," particularly during a period when Australians are facing significant cost-of-living challenges. She asserted that the funds "should never have been taken from workers in the first place." Meanwhile, recently, the Big Four bank was in the news, along with its subsidiary AFSH Nominees (AFSH), for ignoring customers in financial distress. The Federal Court mandated that NAB and AFSH pay a total of A$15.5m in penalties for their inadequate response to customers facing financial problems. "NAB to take A$85m hit this year over staff underpayments" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

ASX bull run hits sixth straight record day
ASX bull run hits sixth straight record day

Yahoo

time2 days ago

  • Yahoo

ASX bull run hits sixth straight record day

Australia's stock market set an 'unprecedented' sixth straight day of record highs on the back of a strong start to earning season led by the major banks. The benchmark ASX 200 rose 20.70 points or 0.2 per cent to finish at 8,959.30 while the broader All Ordinaries finished 21.40 points or 0.23 per cent higher at 9,233.50. The Aussie dollar edged higher and was buying 65.14 US cents. On an overall strong day on the market, seven of the 11 sectors finished higher. The banking sector helped drive the market led by NAB shares which jumped 2.65 to $40.23 on strong quarterly results. CBA, was also up 1.2 per cent to $170.19 and Westpac gained 0.71 per cent to $37.07. ANZ was the outlier, down 1.54 per cent to $32.57. IG market analyst Tony Sycamore said the Australian market continued its record breaking run on the back of a strong start to the reporting season. 'I believe this is unprecedented,' he said. 'It's fair to say we continue to this historic run higher for the ASX200 and we are now not too far away from those 9000 levels which has come on the back of RBA rate cuts and a pretty solid start to reporting season.' Mr Sycamore cautioned while corporate Australia was so far showing strong results, it was usually the businesses with better results which reported at the start of the season. 'This is going to be the week where I think we probably start to see some of those seasonal tendencies around reporting season hold true, this should be the week where things start to get a little hairier,' he said. Materials were the main handbrake on the market with BlueScope Steel falling 3.14 per cent to $23.48. The major iron ore miner also slid. BHP fell 1.17 per cent to $41.47, Rio Tinto slid 1.52 per cent to $113.30 and Fortescue Metals dropped 0.60 per cent to $19.72 as investors feared iron ore prices could fall on the back of weak Chinese demand. On another busy day of reporting season, NAB announced cash earnings for the three months until the end of June of $1.77bn. It also flagged a spike in operating expenses due to a payroll problem that is estimated to cost $130m. Qantas was hit with a $90m fine after the federal court found it illegally outsourced 1820 jobs to prevent industrial action during the pandemic, with its shares falling 0.43 per cent to $11.58. Shares in Lendlease were the standout, as it soared 6.67 per cent to $5.92 on the back of announcing the business had returned to a $225m profit, compared with a $1.5bn loss in the previous year. Rail giant Aurizon shares jumped 1.83 per cent to $3.33 after it delivered $303m in net profits as well as 200 roles being made redundant. REA Group shares also gained 4.45 per cent to $261.42 after the Real Estate platform appointed Cameron McIntyre as chief executive to succeed long-serving boss Owen Wilson. BlueScope Steel fell after telling the market full year profits slumped to $83.8m down from $806m this time last year. DigiCo Infrastructure REIT dived 14.06to $2.75on inaugural financial results which showed earnings before interest, taxes, depreciation and amortisation came in at $99m. Outdoor advertising company oOh!media shares also slumped 10.17 per cent to $1.59 after net profits after tax came in at minus $11.3m. Online retailer Kogan shares fell 2.50 per cent to $3.90 due to writing down the goodwill for its Mighty Ape acquisition on poorer-than-expected trading performance and longer than anticipated recovery from the platform technology challenges following the October 2024 website update. Jeweller Michael Hill traded flat on the news Jonathan Waecker will take over as chief executive.

‘Absolute priority': Bank's $130m pay bungle
‘Absolute priority': Bank's $130m pay bungle

Yahoo

time2 days ago

  • Yahoo

‘Absolute priority': Bank's $130m pay bungle

A big-four bank has revealed it will pay back workers $130m due to a payroll system problem at the same time that it announced an eye-watering profit. In its latest quarterly results, NAB announced a slight increase in third-quarter profits while pointing to a jump in operating expenses due to back paying workers. According to the bank, operating expenses were up 4.5 per cent on last year as it dealt with payroll issues estimated to come in at $130m for the 2025 financial year. The bank did not say how many employees need to be back paid. 'NAB payroll review and remediation is ongoing and total costs remain uncertain,' the bank said. The payroll review first began in 2019 and led to costs of more than $250m between 2020 and 2022. In 2020, NAB said it had underpayments to staff dating back all the way to October 2012. Moving staff to a new enterprise agreement in 2024 identified further payroll issues. As a result, NAB has initiated a broader review into payroll-related benefits. NAB group executive people and culture Sarah White said a dedicated team was continuing to investigate and resolve issues, remediate colleagues and ensure sustained future compliance. 'Paying our colleagues correctly is an absolute priority,' she said. 'We are sorry and apologise to our colleagues that this has happened and have commenced remediating those impacted.' Meanwhile, NAB reported a slight increase in third-quarter cash earnings on the back of improved margins and growth in both business and home lending. NAB made $1.77bn for the three months ending June 30, up from $1.75bn this time last year. NAB said business lending grew 4 per cent and Australian home lending grew 2 per cent during the quarter. Net interest margins increased 8 basis points. Expenses were also up 3 per cent on the back of higher staff costs, investment in new technology and remediation costs. Bank deposits were largely stable over the quarter but are up 6 per cent over the nine months to June 30. The major lender also booked a credit impairment charge of $254m in the quarter, mainly related to business lending in Australia and New Zealand as well as unsecured Australian retail portfolios. NAB chief executive Andrew Irvine said focusing on key priorities led to Monday's result. 'We remain optimistic about the outlook and are well placed to manage NAB for the long term and deliver sustainable growth and returns for shareholders,' he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store