National Australia Bank Ltd (NAB) has described the political and public backlash against recent mortgage rate rises by the major banks as unjustified and unfair.
The bank also repeated its call for major banks to move their interest rates independently of moves by the Reserve Bank of Australia (RBA).
NAB chairman Michael Chaney told Wednesday's annual general meeting the bank's borrowing costs were higher due to tighter offshore wholesale funding markets and competition for deposits.
He repeated comments made earlier this week by NAB managing director Cameron Clyne that the RBA's cash rate movements had little bearing on the borrowing costs of the major banks.
"Such criticism is unjustified and unfair," Mr Chaney said of the backlash against the major banks.
"The fact is that the fundamental premise upon which bank bashing is based that Australia's banking sector is insufficiently competitive, and that it is less competitive than before the GFC - is false," Mr Chaney said.
"This is a fiercely competitive industry and one in which profit returns have fallen markedly since before the GFC."
Mr Clyne told the Senate committee inquiry into banking competition on Monday banks should change their variable mortgage interest rates independently of the RBA's cash rate movements.
Mr Chaney added to those comments on Thursday, saying "there have been a few out-of-synch moves and I suspect that is what you'll see a bit more of, going forward".
Thursday's meeting was told NAB would continue to achieve steady profit growth in the years ahead.
A gradual improvement was expected in NAB's troubled UK assets, while the board has had lengthy discussions of future growth strategies for Asia, Mr Chaney said.
"In due course we will have a significant presence there," he said of Asia, but added NAB was focused on "logical, incremental growth".
Mr Clyne said he was pleased with NAB's response to its recent technical glitch that delayed transactions and payments.
"We are now focused on delivering on our commitment to ensure those affected by the delays are not left out of pocket as a direct result," he said.
"In many cases, this has already started."
NAB's remuneration report, which reported that Mr Clyne received a package worth $5.6 million in the year to September 30, was overwhelmingly approved by shareholders.
NAB shares were up three cents at $24.48 at 1418 AEDT.
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