NAB will take a A$1.14 billion hit to its March 2020 half net profit, following its decision to book charges related to customer remediation, a change to its software capitalisation policy and impairment of the carrying value of its investment in MLC Life.The charges are before loan impairments, which E&P analyst Matthew Wilson estimates will be 36 basis points of gross loans and acceptances this financial year.The biggest item is the change to the application of the software capitalisation policy. NAB will reduce the bank's capitalised software balance at March 31 by $1.05 billion. It will reduce net profit by $742 million.The bank has increased the minimum threshold at which software is to be capitalised from $2 million to $5 million. NAB said in a statement that the change was intended to increase accountability for projects under $5 million.Commentators in the IT press have taken the statement to mean that NAB chief executive Ian McEwan wants better control of what has been described as the bank's "sprawling technology estate".The net increase in provisions for customer remediation will be $268 million, with a $188 million impact on net profit.Impairment of the carrying value of NAB's investment in MLC Life will be $214 million. The impairment represents a 37 per cent reduction in the carrying value of NAB's 20 per cent investment in MLC Life.The MLC impairment will reduce net profit by $214 million.The increase in remediation provisions is expected to reduce the bank's common equity tier 1 capital by around 6 basis points. The change to software capitalisation and impairment of the investment in MLC Life will have no impact on the bank's CET1.NAB's announcement follows disclosure by Westpac last week that increased provisions and asset write-downs would add up to around $1.43 billion after-tax for the March half. Included in that amount is $900 million in relation to Austrac's claim over Westpac's non-compliance with anti-money laundering law and $130 million for costs associated with its Austrac response plan.