NAB to take $130 million hit as yet more staff | Australian Markets

National Australia Bank will put apart one other $135 million to cowl yet more staff underpayments uncovered by a widening payroll review that’s already six years previous.

Announcing quarterly outcomes on Monday, NAB flagged a 4.5 per cent increase on this financial 12 months’s working bills to meet “further payroll issues” recognized by the review.

The probe was launched in 2019 to initially look into how 730 NAB workers had been short-changed about $850,000, however it has since uncovered widespread underpayments throughout the bank which have already value it lots of of tens of millions of {dollars}.

NAB, which has invested in a new payroll platform, on Monday stated it now anticipated to spend $130m for the 2025 financial 12 months on the review and “remediation of payroll issues”, however that quantity might go even greater.

That’s on high of $250m of repayments and different prices incurred between 2020 and 2022 alone.

“This ongoing review and investment and the work undertaken to transition to a new (staff) enterprise agreement has helped identify further payroll issues,” NAB stated.

“As a result, NAB has initiated a broader review into payroll-related benefits under current and certain historical agreements.”

NAB’s group government of people and tradition, Sarah White, insisted “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.”

NAB’s outcomes for the three months to June 30 confirmed the nonetheless growing underpayments downside contributed to a flat money revenue of $1.8 billion for the period, decrease than its first-half average.

Revenue was 3 per cent greater, with business and personal banking growing 4 per cent. together with file June month-to-month business lending stability growth of $4.6b. However, that was offset by elevated impairments of $254m and a 3 per cent increase in bills.

Home lending improved 2 per cent over the quarter, whereas deposits growth was flat however stood at 6 per cent for the primary 9 months of the 2025 12 months.

Operating bills are tipped to grow 4.5 per cent for the 12 months. “This includes costs associated with a program to identify, rectify and remediate payroll issues … which is disappointing and must be fixed”.