'Challenging' year sees NAB's full-year profit tumble 14%

Andrew Thorburn, chief executive officer of National Australia Bank. Image: Getty

The National Australia Bank has posted a full year profit of $5.7 billion, down 14.2 per cent on 2017, thanks to restructuring and customer remediation costs.

NAB CEO Andrew Thorburn said the 2018 financial year was “challenging”, and noted the lower earnings were also partly the result of greater business investment. He said costs will be flat over the coming two years.

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The restructuring cost came to $755 million and customer remediation cost the bank $360 million.

However, the bank kept its final dividend at a fully franked 99 cents for the fifth straight year and held its net interest margin at 1.85 per cent.

“We are listening and responding to customers, including royal commission issues, and are proactively taking steps to be more customer focused, trusted by customers for exceptional service,” Thorburn said.

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“The Royal Commission has raised instances where we failed to treat customers with care and respect.

“We are determined to put things right and are taking steps to build a better bank.”