Invest
Big 4 bank flags remediation hit
One of Australia’s big four banks is gearing up to pay another hundred-million-dollar fine, according to the company announcement.
Big 4 bank flags remediation hit
One of Australia’s big four banks is gearing up to pay another hundred-million-dollar fine, according to the company announcement.
NAB has announced a net increase of $380 million for customer-related remediation, of which $245 million is for wealth-related matters, while $135 million is for banking-related matters.
There has also been a net increase in payroll remediation provisions of $128 million, while the bank expects an impairment charge of $134 million for property-related assets.
Wealth-related charges stem from non-compliant advice given to wealth customers, along with adviser service fees charged by NAB Financial Planning.
There has also been a general increase for ongoing liabilities associated with parts of the existing wealth remediation program that NAB retains responsibility for following the sale of MLC to IOOF. The charges will reduce NAB’s common equity tier 1 capital ratio by around 15 basis points.
The bank also announced payroll distributions, with self-reporting finding current employment potentially received lower than expected payments.
“NAB will be remediating underpayments back to 1 October 2012, expected to result in new provisions of $128 million before tax in 2H20 comprising expected compensation costs of $110 million and cost of remediation program of $18 million,” the statement said.
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