NAB boss Phil Chronican relaxed about "negative equity" as long as jobless rate stays low

National Australia Bank interim chief executive Phil Chronican says less than one percent of its loan book is in "negative equity" where an outstanding loan exceeds a property's value.

But Mr Chronican says negative equity won't become a shock as long the unemployment rate remains low. 

NAB has posted a 4.3 percent increase in half year profit to $2.7 billion dollars, but has cut its dividend to investors and clawed back $5.5 million in executive bonuses as Royal Commission fallout continues to bite. 

Phil Chronican spoke with ABC's Peter Ryan.