Payment protection mis selling had cost the National Australia Bank, with its UK subsidiaries Clydesdale and Yorkshire bank, 14% of their expected profit due to their compensation package.
Andrew Thorburn, CEO of National Australia Bank, said the PPI mis selling had £670m completely removed for consumer compensation. He said the profits for the UK banks were down, but their core operations on Australia and New Zealand remain unaffected.
NAB also has a £250m interest swap mis selling compensation and £269m for deferred tax assets and IT systems in the United States.
Thorburn admits it is disappoint to provide new provisions based on the figures, but he looks forward to ensuring fairness and “investing in building a better bank for customers.
NAB, along with other UK banks, have reached £23 billion in PPI compensation with over £16 billion paid back to consumers.
PPI is a product that repays loan or credit card monthly instalments. However, it was forcefully sold to consumers who were not eligible or did not need the insurance policy.
Millions of consumers continue to make a claim for payment protection insurance. The FCA said that bank cooperation has improved and PPI claim numbers have dropped by 50%