"Clearly the environment is very challenging for banks,that is a reality,"Mr Hartzer said in a media briefing.
After a"disappointing year"for the bank,the bank signalled profit margins had fallen during recent months,and in the year ahead it would face soft loan growth,lower fee income and higher costs.
Mr Hartzer said the bank's performance was being hit by weak economic conditions and the bank could face further lawsuits or fines from regulators. The bank also forecast a further $245 million rise in its risk and compliance spending.
“I think we’re in a cyclical downturn for the economy where growth rates are low,credit demand is low and interest rates are very low at the same time as there’s a significant investment required in regulatory and compliance matters,” Mr Hartzer said in an interview withThe Sydney Morning Herald andThe Age.
While Mr Hartzer would not give profit guidance,analysts said it would be tough for the bank to post any profit growth in 2020.
Shaw and Partners analyst Brett Le Mesurier said:“Excluding remediation costs,profits should be down,because there should be no revenue growth or revenue growth close to zero.”
PM Capital portfolio manager Uday Cheruvu said the results showed banks'capacity to make profits had been"significantly"hurt by the crackdown on wealth management - which has sparked fee cuts and divestments - and lower interest rates were also dragging on returns.