Nov 6, 2019
National Australia Bank’s profit slumps in ‘challenging’ year
National Australia Bank reported a 10.6 per cent slump in full-year cash profits to A$5.09bn on Thursday, as customer remediation costs linked to a public inquiry into sector misconduct and a challenging operating environment dented its performance. Australia's third-biggest bank by market capitalisation said its 2019 results, which came in below consensus estimates, were disappointing with cash earnings at its three main Australian divisions - business, consumer and institutional banking - falling. "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 Philip Chronican, NAB chief executive. NAB is the third of Australia's Big Four banks to report disappointing annual results over the past week as they face regulatory headwinds flowing from the Royal Commission inquiry into misconduct across the financial sector. The banking sector also faces challenges from a weakening Australian economy and cuts to official interest rates, which are eroding profit margins.
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