Overview

• National Australia Bank expects to take a A$130 million charge this financial year to cover newly discovered payroll underpayments and related review costs.
• The bank has apologised to staff and initiated a broader review of current and some historical enterprise agreements to uncover further entitlements errors.
• NAB said it is too early to determine how many employees were affected by the latest payroll problems and that remediation remains ongoing.
• The updated cost guidance was released alongside a nearly flat A$1.8 billion June quarter profit supported by 4% business lending growth and 2% home lending growth.
• Chief executive Andrew Irvine affirmed that NAB still plans to deliver more than A$400 million in productivity savings for the 2025 financial year despite higher operating expenses.