Oct 23 (Reuters) - National Australia Bank said on
Friday its second half cash earnings will take a A$264 million
($188 million) hit from provisions for customer and payroll
remediation and an impairment of property assets.
The charges will reduce net profit by A$450 million, with
NAB's decision to offload MLC Wealth, the wealth unit it is
selling to IOOF Holdings, trimming the cash earnings
NAB said around 65% of A$266 million after tax set aside for
customer remediation is linked to MLC Wealth. Another A$90
million has been set aside for payroll, including long-term
overpayment and underpayment issues. An A$94 million impairment
charge for property assets takes into account changes linked to
more employees working remotely.
Cash earnings is a closely watched measure of performance
for banks as it strips out unusual items.
Australia's No.3 lender said the provisions and impairment
costs will reduce the bank's common equity tier 1 (CET1) ratio
by 15 basis points.
The bank is due to report full year results on November 5.
($1 = 1.4033 Australian dollars)
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by
Muralikumar Anantharaman and Jane Wardell)