Westpac’s loan book plummets as mortgage growth collapses

National Australia Bank (NAB) plans to cut 2500 jobs (6% of workforce) by FY2027, with 1500 roles reduced by end-2026. The cuts focus on corporate functions, not customer-facing roles, and will reduce consultant and contractor use. CEO Andrew Irvine noted broader leadership responsibilities. NAB did not disclose financial details.

NAB plans to cut up to 2,500 jobs (6% of workforce) by FY27, with a $300M restructuring charge expected. The bank aims to streamline operations and invest in growth areas. CEO Andrew Irvine stated the changes will improve efficiency and customer service. NAB is in talks with the Finance Sector Union for support and transition programs. The cuts are part of a broader trend in Australia's banking sector.

Australia's Big Four banks (Commonwealth, Westpac, ANZ, NAB) raised variable home loan rates by 0.25% from October, following the RBA's cash rate hike to 4.60%. The RBA cited persistent inflation, now at 4.0% annually, for the increase. The banks hold over 70% of household mortgages in Australia.

The S&P/ASX 200 Index dropped 3% to a 10-week low. NextDC (ASX: NXT) fell 6.22% to $12.06, with a buy rating from Shaw and Partners citing strong demand for data centers. South32 (ASX: S32) declined 3.82% to $5.02, with a hold rating from RaaS Group due to commodity price outlooks. CBA (ASX: CBA) fell 3.88% to $154.19, with a sell rating from Shaw and Partners citing high valuations and modest earnings growth.

Fitch revised the outlook on New Zealand's big four banks (ANZ NZ, BNZ, Westpac NZ, ASB) to positive, citing expected Reserve Bank capital rules that will allow issuance of loss-absorbing capacity (LAC) instruments to Australian parents. This is expected to bolster the banks' positions within their parent groups. ASB's AA- rating is higher due to its parent, Commonwealth Bank of Australia's, AA rating. The Reserve Bank plans to consult on LAC requirements next year, with implementation from late

Commonwealth Bank of Australia (CBA) shares fell 9.93% in August despite reporting a record annual profit of A$10.98 billion. The decline was driven by valuation concerns, regulatory changes, and rising loan arrears. Analysts have a 'Strong Sell' consensus with an average price target of A$125.21, suggesting further downside.