Bank rate hikes 'overdone': Turnbull

Prime Minister Malcolm Turnbull has called Australia's big four banks out on their recent interest rate hikes, saying they have "overdone it".

National Australia Bank on Wednesday announced its annual profit jumped 20 per cent to $6.34 billion, shortly after the company decided, along with ANZ, Westpac and Commonwealth Bank, to lift interest rates on mortgages to help cover the cost of new capital requirements.

Mr Turnbull told Adelaide's FIVEAA radio the increase by the banks was higher than justified, with Westpac's 0.2 per cent rate hike amounting to double what's needed to cover the cost of the rule change.