The big four bank followed Westpac’s lead earlier this week in suspending short and long term bonuses for its entire executive team as falling earnings resulted in its full-year earnings plunging 10.6 per cent to $5.1 billion.
The result was weighed down by record low interests rates and a weaker operating conditions, while the $1.1 billion in customer remediation expenses following the fateful royal commission into the finance sector also put a significant dent in the books.
“This year has been very challenging, requiring significant actions for us to deal with past issues and make real changes aimed at earning trust with customers and the community,” chief executive Philip Chronican said in a statement to the ASX.
NAB has followed its major rivals this week in slashing its final dividend, with shareholders to receive a fully franked 83 cents, down from 99 cents last year.
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