Bulletin: Regulator's Civil Proceedings Against NAB Likely To Drag On Business And Earnings

SYDNEY (S&P Global Ratings) Dec. 18, 2019--S&P Global Ratings today said that regulator-initiated civil proceedings against National Australia Bank Ltd. (NAB; AA-/Stable/A-1+) are likely to weigh on the bank's business and earnings. As we foreshadowed in "Westpac Lapses Aggravate Challenges Facing Major Australian Banks," published on Nov. 25, 2019, we expect that regulator-initiated civil proceedings are likely to remain a drag on the business and earnings for the Australian major banks in the next two years. On Dec. 17, 2019, the Australian Securities and Investment Commission (ASIC) announced that it has commenced civil penalty proceedings against NAB in the Federal Court of Australia relating to contraventions of the ASIC Act and the Corporations Act. Amongst other issues, ASIC alleges that

...December 17, 2019 SYDNEY (S&P Global Ratings) Dec. 18, 2019--S&P Global Ratings today said that regulator-initiated civil proceedings against National Australia Bank Ltd. (NAB; ##-/Stable/A-1+) are likely to weigh on the bank's business and earnings. As we foreshadowed in "Westpac Lapses Aggravate Challenges Facing Major Australian Banks," published on Nov. 25, 2019, we expect that regulator-initiated civil proceedings are likely to remain a drag on the business and earnings for the Australian major banks in the next two years. On Dec. 17, 2019, the Australian Securities and Investment Commission (ASIC) announced that it has commenced civil penalty proceedings against NAB in the Federal Court of Australia relating to contraventions of the ASIC Act and the Corporations Act. Amongst other issues, ASIC alleges that NAB engaged in fees for no service conduct, failed to issue, or issued, defective fee disclosure statements, and failed to establish and maintain compliance systems and processes...

Bulletin