Morgan Stanley expects NAB job cuts to support a stronger cost outlook
Morgan Stanley analyst Richard Wiles says cuts of up to 2,500 roles could help National Australia Bank save costs and keep cost growth below 3% in fiscal 2027.
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what happened
Morgan Stanley's bear case on National Australia Bank says the lender's job cuts should support a better-than-expected cost picture ahead of its November annual result, according to Market Talk, citing a note from analyst Richard E. Wiles.
Wiles estimates the operating-model changes announced this week could generate gross cost savings of A$400 million to A$500 million. Part of the savings from up to 2,500 redundancies will be reinvested. He expects fiscal 2027 guidance for cost growth of less than 3%. Morgan Stanley has an underweight rating on the stock with a target price of 34.00 Australian dollars. Shares were up 1.1% at A$39.62.
why it matters
For investors in Australian banks, cost trends matter because they determine how well profit holds up when revenue growth is slow. If savings come in near the analyst's estimate, that could ease pressure on NAB's upcoming results. The view is one analyst's estimate and is not a guarantee of outcomes.
market impact
Australian banks: expected cost savings may support profit expectations for NAB
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sources
- NAB Bear Sees Job Cuts Supporting Better Costs Story — Market Talk, 21 October 2026 at 03:44 UTC
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