NAB’s National Australia Bank wealth business reported cash earnings of A$250m ($178.1m) for the year ended 30 September 2018, a fall of 9% compared to A$274m ($195.2m) a year ago.

Net operating income at the business dropped 4% to A$994m from A$1.03bn last year, while operating expenses dipped 3% year-on-year to A$649m.

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The wealth business forms part of NAB’s Consumer Banking and Wealth arm, which recorded 6% drop in cash earnings year-on-year to A$1.54bn.

The fall in earnings at the Consumer Banking and Wealth unit was said to be due to higher operating expenses. Net operating income at the division remained almost stable at A$5.5bn.

The Business and Private Banking unit of NAB reported cash earnings of A$2.91bn for the year ended 30 September 2018, a rise of 2% from A$2.84bn a year ago.

The bank attributed the rise to balance sheet growth as well as full year repricing benefits in the lending portfolio.

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Net operating income at the unit increased 4% to A$6.6bn from A$6.32bn last year. The division’s operating expenses increased 7% to A$2.23bn on a year-on-year basis.

Overall, the banking group registered cash earnings of A$5.7bn in the year ended 30 September 2018, down 14% from A$6.64bn in the previous year. The fall was driven by restructuring costs and customer compensation payments.

NAB CEO Andrew Thorburn said: “Our FY18 result was impacted by restructuring-related costs and customer-related remediation, with cash earnings 14% lower than FY17. Excluding these items, cash earnings declined 2% due to higher investment spend as we accelerate investment to transform our business.

“Pleasingly, revenue was higher with good lending growth and stable margins. Asset quality and balance sheet metrics remain sound, and we have a clear path to achieving APRA’s unquestionably strong CET1 target of 10.5% by January 2020.”