National Australia Bank has announced additional advice remediation costs of $314 million.
In an announcement released to the Australian Securities Exchange (ASX) today, the big banking group said this would reduce second half earnings by an estimated $261 million and earnings from discontinued operations by an estimated $53 million.
It said the additional costs arose primarily in relation to several customer remediation matters including refunds and compensation to customers impacted by issues in NAB’s wealth business, including advisor service fees, plan service fees and wealth advice review and other wealth related issues.
The announcement said the costs also related to implementing remediation processes and other costs associated with regulatory compliance matters.
Commenting on the costs, NAB chief executive, Andrew Thorburn said the bank had let customers down and was determined to put things right.