About 6,000 jobs are expected to be cut over the coming years, partially offset by the creation of 2,000 new roles, the bank said.
"This involves an estimated $1.5 billion increase in investment by the end of FY20 to further improve the experience for our customers, reshape our workforce and grow our bank", he said.
"Cost savings of greater than $1 billion are targeted by the end of FY20 as we further simplify our business", he said.
Statutory profit rose from 2016's impairment-heavy $352 million to $5.285 billion, with the overall result in line with analyst expectations.
The lender on Thursday said cash profit for the 12 months to September 30 rose from $6.483 billion a year earlier on the back of a 2.7 per cent rise in revenue - with growth in both housing and business lending.
Thorburn said the FY17 result "represents another year of consistent delivery".
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Since taking over as chief executive in late 2014, Andrew Thorburn has spun off and listed CYBG PLC (CYBG.LN), a company housing Clydesdale and Yorkshire Bank in the United Kingdom, sold an 80% stake in its insurance arm and also listed regional USA lender Great Western Bancorp Inc.
The bank will reportedly hire around 2,000 new employees, meaning a net reduction of around 4,000 staff.
The bank says the changes "will result in a net reduction in staff now targeted at approximately 4,000 by the end of FY20, which is expected to give rise to a 1H18 restructuring provision of $0.5-0.8 billion".
"Throughout this process we will treat our people with care and respect and equip them for the future".
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