NAB profits tumble 10.6 per cent as customer compensation costs bite

National Australia Bank’s profits fell 10.6 per cent and it kept the final dividend in line with its interim payment, in a result that was battered by heavy remediation costs.

NAB on Thursday wrapped up the round of full-year results from the country’s biggest banks, delivering a cash profit of $5.1 billion. The result included after-tax charges of $1.1 billion in charges for customer compensation claimed, which the bank had previously disclosed.

Phil Chronican said it had been a “very challenging” year.Credit:Paul Jeffers

“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,” said interim chief executive Phil Chronican.

After Westpac slashed its dividend earlier in the week, NAB said it would pay a final dividend of 83c a share, matching the dividend for the first half, when the bank lowered dividends.

NAB had been expected by analysts to deliver a cash profit of $5.1 billion to $5.2 billion.

More to come


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