The bank has launched a multi-billion capital raise and slashed dividends and executive pay in order to keep afloat through the coronavirus crisis.
NAB has slashed the fixed remuneration of its executives by 20 per cent and its interim dividend to 30 cents a share.
“We acknowledge you are feeling the pain of significant recent drops in the value of your investments across the market,” CEO Ross McEwan said in a letter to shareholders. “Many of you rely on investments for your livelihood, particularly in retirement. We also know that reducing the 2020 interim dividend to 30 cents per share has a direct impact on our shareholders, and those invested in NAB through their superannuation.”
“These actions are intended to provide us with sufficient capacity to continue supporting our customers through the challenging times ahead, as well as increasing our capital level to assist to manage through a range of possible scenarios, including a prolonged and severe economic downturn.”
The bank has also launched a $3 billion capital raising in order to strengthen its buffer against credit losses.
More to come.