National Australia Bank has posted unaudited third-quarter cash earnings of $1.65 billion and has confirmed it expects more provisions with its full-year results.
The lender released a brief trading update on Wednesday showing cash earnings and revenue both improved one per cent on the average of the two previous quarters.
The unaudited cash earnings figure was the same as that given a year ago.
NAB said net interest margin for the three months to June 30 - a period that included the first of the Reserve Bank's two 25 basis point cash rate cuts - increased on the back of lower short-term funding costs.
Expenses were flat as savings from the lender's ongoing transformation program compensated for higher compliance and risk costs.
Interim chief executive Philip Chronican called the quarterly performance "solid" considering it came against the backdrop of several challenges.
Those challenges include subdued home lending growth and remediation and compliance work following the financial services royal commission.
When NAB made $325 million in customer remediation provisions with its first-half results, Mr Chronican said he hoped to deal with aligned adviser remediation in the second half.
NAB, which has since appointed Ross McEwan as CEO, confirmed on Wednesday it expects those provisions with its full-year results.
"As previously highlighted, customer remediation programs and regulatory compliance investigations are continuing with potential for additional costs," Mr Chronican said.
"While amounts and timing remain uncertain, additional provisions are expected to be recognised in 2H19."
The bank is still waiting for Mr McEwan to finalise his departure from the UK's Royal Bank of Scotland.
"Ross is an experienced banker with a track record for delivering the change required to be the bank we want to be for customers and restore community trust," Mr Chronican said.
NAB will report its full-year results on November 7, about the same time as ANZ and Westpac.
Commonwealth Bank, which is on a different financial calendar to its peers, last week reported that full-year cash profit fell by a worse than expected 4.7 per cent to $8.49 billion.
CBA's operating income slipped 2.0 per cent, while net interest margin declined by five basis points.
NAB shares were worth $27.66 before the start of trade on Wednesday, up 15 per cent this calendar year.