The cost of $314 million will reduce the 2018 cash earnings by an estimated $261 million and earnings from discontinued operations by an estimated $53 million.
These additional costs are due to refunds and compensation to customers impacted by issues in NAB’s wealth business, including adviser service fees and other wealth related issues.
Further costs are due to implementing remediation processes and various costs associated with regulatory compliance matters.
NAB chief executive Andrew Thorburn said that the bank had let people down and wanted to refund affected customers as quickly as possible.
“Where we have let customers down we are determined to put things right. We have made good progress in resolving a number of issues that impacted our customers and we want to compensate them as quickly as possible,” he said.
Of the cash earnings impact, approximately 69 per cent will impact revenue, with the balance reported in expenses.
These additional costs will be excluded from the 2018 financial year expense growth guidance, which also does not include costs associated with responding to the royal commission.
Will they return the different industry awards they collected over the years?
Has anyone worked out how many additional basis points across the loan book are required to recover 310 million??
Headline once again implying it was all advisers at fault. When text shows “These additional costs are due to refunds and compensation to customers impacted by issues in [u]NAB’s wealth business[/u], including adviser service fees and [u]other wealth related issues[/u].” This clearly indicates it was not just Advice issues! Can we please have a more balanced approach to reporting that does not imply advisers are the only ones to blame.
Such a nanny state litigious society we have turned into. Hark the herald of the next wave of ambulance chasing solicitor group actions
Yeah mate, solid call. I’ll be starting a petition soon calling for the scrapping of the entire judicial system in Australia. It’s just out of control now – punishment/recompense for wrongdoing? Absurd!
It’s a nanny state, Anon. And I, like you, are against it. Bring back the good old days I say – if you had a problem with someone else you slapped them across the face with your glove, challenge them to a duel, and then tried to kill each other in the middle of the street.
Should get rid of a few banking CEO’s….unless of course they are in reality colluding with one another!