‘Profit over people:’ NAB grilled during AGM

NAB bosses have acknowledged that its most vulnerable customers were left in the lurch as they faced angry shareholders over the bank’s failures.

NAB has come under fire from angry shareholders who used the bank’s annual general meeting to voice their concerns about its shortcomings in key business areas.

During a meeting at the Melbourne Convention and Exhibition Centre, NAB shareholders questioned the bank’s policies on hardship payments and diversity hires.

Failing to help those in hardship

Shareholders grilled bank executives on ASIC allegations that between 2018 and 2023 NAB failed to respond to 345 customers in hardship within the legal timeframe.

Shareholders asked how the bank missed these customers, with one saying: “It gives the appearance NAB continues its profit over people. There are longstanding cases that hang around year after year instead of being settled.”

NAB has failed customers facing hardship. Picture: NewsWire / Glenn Campbell

NAB chief executive Andrew Irvine acknowledged that NAB had let these customers down.

“We regret what happened to these customers. It was an operational mistake. There were over 100,000 applications, but there were 345 people we failed to help,” he said.

“We don’t throw money at defending indefensible positions. There will be some legal proceedings, but we acknowledge that we did not look after those 345 people.”

Shareholders also questioned how much support the bank had given to these people.

ASIC chair Joe Longo alleges NAB unlawfully failed to respond to their customers’ appeals for help when they needed the bank most.

“These customers included people who were domestic violence victims, battling serious medical conditions, dealing with business closures or job loss. NAB’s failures likely compounded the already challenging situation for these people,” he said.

“Amid rising cost-of-living pressures, we have seen an increased number of customers reach out to their lenders for relief, and we have seen first hand the impact on lives and livelihoods when lenders fail to appropriately support customers experiencing financial hardship.”

NAB faced firey shareholders over its support of oil companies. Picture: NewsWire / Lachie Millard

Diversity policies

Shareholders questioned NAB on its diversity policies, seeking to find out if it was hiring the best person for the job.

NAB chair Philip Chronican said he did not see any conflict between the bank’s approach to diversity and equal opportunity or merit-based selection.

“What we know today is that, in fact, for some time now, university graduates who leave university qualified in the areas that we’re interested in have been roughly 50/50, or indeed, in some cases, majority female,” he said.

“And therefore it’s highly likely, and should be expected, that around half of the available talent pool will be women, and that a large number of the talent pool will be from non-traditional Anglo backgrounds.”

Australian economy

Mr Irvine said even with headwinds both domestically and internationally, the national economy was in reasonable shape and the bank optimistic about the longer-term outlook.

He said business conditions were favourable and the job market remained strong, which positioned Australia well against its global peers.

NAB says overall the Australian economy is in reasonable shape. Picture: NewsWire / David Crosling

“Restrictive interest rates are working to bring inflation into the Reserve Bank’s target range, and we do expect to see rates decrease in the first half of 2025,” he said.

“In the meantime, we do recognise that many customers are finding the higher cost of living challenging and we are here to help. Our message is clear, please call us and call us early.”