Australia's NAB reports $85 million rise in costs due to employee underpayment

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Aug 18 2025

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Source: Reuters

Expense Increase Due to Underpayment: National Australia Bank (NAB) announced that its full-year expenses could rise by up to A$130 million due to underpayment of staff, following a payroll review initiated in 2019.
Ongoing Payroll Review: The bank is conducting a broader examination of payroll-related benefits and has not disclosed the number of affected employees or the total discrepancies found.
Third-Quarter Earnings Report: NAB reported a slight increase in third-quarter cash earnings to A$1.77 billion, with growth in business lending and home lending contributing positively to its financial performance.
Engagement with Unions: NAB is collaborating with the Finance Sector Union and Fair Work Ombudsman to address the issue, with union leaders demanding assurances against future pay discrepancies.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.