Misconduct Costs Are Starting to Bite for Australia's Big Banks
(Bloomberg) -- Two weeks out from earnings season, Australia’s major banks are preparing investors for less than stellar news.
National Australia Bank Ltd. on Tuesday joined Westpac Banking Corp. and Australia & New Zealand Banking Group Ltd. in announcing new provisions associated with the costs of cleaning-up years of bad behavior.
All three banks are putting more money aside for remediation including compensating wealth customers who were charged fees for services they didn’t receive.
With growth already under pressure as the housing market cools, analysts have been downgrading their expectations for this year’s earnings. In August, Commonwealth Bank of Australia -- which reports on a different cycle to the other banks -- saw its annual profit drop for the first time in nine years.
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