NAB chief executive Andrew Thorburn and chairman Ken Henry are stepping down, becoming the highest-profile banking casualty of the financial services royal commission.
NAB shares were placed in a trading halt ahead of an announcement about "leadership changes" before the bank confirmed at 5.15pm on Thursday the end of Mr Thorburn's and Dr Henry's tenure following days of intense speculation.
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Kenneth Hayne's final royal commission report - made public on Monday - expressed serious concerns about the leadership of Mr Thorburn and Dr Henry, sparking renewed questions from investors about whether they could stay in their roles.
"I acknowledge that the bank has sustained damage as a result of its past practices and comments in the royal commission's final report about them," Mr Thorburn said in the statement to the ASX.
"As CEO, I understand accountability.
"I have always sought to act in the best interests of the bank and customers and I know that I have always acted with integrity.
"However, I recognise there is a desire for change. As a result, I spoke with the board and offered to step down as CEO, and they have accepted my offer."
Mr Thorburn will finish on February 28, while Dr Henry indicated he would retire from the board once a new permanent CEO had been appointed.
Dr Henry said he and the board had recognised that change was necessary, saying his departure would allow the bank to "reset its culture".
"The timing of my departure will minimise disruption for customers, employees and shareholders," he said.
"I am enormously proud of what the bank has achieved and equally disappointed about what the Royal Commission has brought to light in areas where we have not met customer expectations. Andrew and I are deeply sorry for this. My decision is not made in reaction to any specific event, but more broadly looking at the bank's needs in coming months and years."
Philip Chronican, a current NAB director with extensive domestic banking experience, will serve as acting CEO from March 1 until a permanent appointment is made.
A global search will be conducted for the new CEO, while internal candidates will also be considered.
