The Chief Executive of the National Australia Bank admits the reputation of NAB has taken a hit this year in the wake of the Banking Royal Commission.

The bank has posted a full-year profit of $5.6 billion.

But there a $360-million hit as the bank refunded and compensated customers, partly for fees-for-no-service.

NAB CEO Andrew Thorburn tells Ross Greenwood trust in banking institutions “has eroded progressively”.

“We’ve got to a point where customers constantly see us as a commodity, as just a manufacturer where there’s no relationship and there’s loyalty.

“And that’s not the way banking should work.

“So the reputation impact has been quite severe.”

But Ross is questioning if the reputational hit is really affecting the bank’s bottom line.

“Well, maybe our growth in market share and therefore growth in revenue hasn’t been what it could’ve been.

“But I think these sorts of intangible things which are hard to measure, they certainly have an impact.”

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Falling housing prices are also having an impact on the bank’s profit.

Mr Thorburn tells Ross there are “more risks today” than the bank saw a year ago.

“But I still think they’re manageable.”