National Australia Bank chief executive Andrew Thorburn said the operating environment for banks became challenging.
Thorburn was speaking as National Australia Bank (NAB) delivered its half year financial report, which was broadly in line with expectations, lifting its first-half cash profit 2.3 percent to $3.29 billion Australian dollars and holding its interim dividend at 99 cents.
The CEO cited heightened regulatory change, digital disruption and increasing stakeholder expectations as ongoing challenges.
Earlier this week ANZ Banking Group reported a $3.4 billion Australian dollar cash profit, which missed expectations.
Reporting Change
NAB previously announced changes to its organisational structure as well as its executive leadership team effective from 1 August 2016. As a result of these announcements, the Group has changed its reporting to align to customer segments.
This change has resulted in three new Australian reportable segments, namely Business & Private Banking, Consumer Banking & Wealth, and Corporate & Institutional Banking.
Wealth and Private Banking
Business & Private Banking grew cash earnings 2.5 percent to $1.36 billion Australian dollars reflecting sound revenue growth and tight cost management.
Consumer Banking & Wealth cash earnings were stable at $764 million Australian dollars impacted by higher funding costs, increased competition in home lending, and reduced Wealth income.
