Remediation of National Australia Bank's delinquent treatment of its customers will wipe at least A$314 million from its second half profit to be unveiled on 1 November.Chief executive Andrew Thorburn revealed the profit hit in a statement to the ASX yesterday, but maintains the bank is making "good progress" addressing defective practices that stretch back six years. Thorburn reprised some of his well-worn rhetoric of recent months to assuage customers and shareholders that his company was on the mend."Where we have let customers down we are determined to put things right," he said."We have made good progress in resolving a number of issues that impacted our customers and we want to compensate them as quickly as possible."The largest component of the bank's latest remediation program relates to the skimming of fees from accounts of wealth management clients for advice services never rendered.Quantification of the costs flowing from such shabby practices led most analysts yesterday to slice their estimates for the group second half profit by 5 per cent.GoldmanSachs analyst Andrew Lyons had already factored in $125 million of customer redress costs for the September half, but expects remediation expenses to also hack into NAB's 2019 financial performance."We find NAB's announcement of further customer redress hardly surprising in light of recent announcements by peer banks," Lyons told investors in a research report.NAB alerted investors to the prospect that customer redress programs would spill into next year, stating they had "potential for further costs, which remain uncertain at this point in time".Lyons estimates that every $100 million increase in pre-tax remediation costs will erode 2019 cash earnings by 1 per cent.NAB is also preparing for a frenzy of legal battles that could further swell its outlays on barristers and other external experts.The bank is facing a swathe of litigation and regulatory action, including a federal court lawsuit launched by ASIC last month, which alleges more than 500,000 breaches of the Corporations Act by  the bank's wealth management arms.Despite the self-inflicted mayhem and cost blowouts, the board and senior management are confident the company will meet APRA's "unquestionably strong" capital requirements in an "orderly manner".Under the new standard, NAB and the other major banks are required to hold core Tier One capital at 10.5 per cent of risk-weighted assets by January 2020.Lyons estimates that the earnings erosion caused by the remediation cost blowouts lowered the bank's CETI capital ratio by six basis points in the September half.In its third quarter trading update published in August, NAB reported its CET1 ratio had fallen to 9.7 per cent from 10.2 per cent at the end of March.Despite the recent trend, analysts believe that NAB is the major bank most likely to reach the 10.5 per cent benchmark without having to mount a large share placement with investors.However, any "orderly" fulfilment of the new capital standard will require a comparatively accident-free 12 months - a steep challenge given NAB's hazardous operating record since the turn of the millennium.Notwithstanding its ghoulish credentials, the bank's regulatory capital position