NAB announces half yearly profits
(4 May 2017 – Australia) National Australia Bank (NAB) posted a 2.3 percent rise in interim cash earnings, marking a return to net profit following the divestment of its British banking operations.
NAB’s cash profit in the six months to 31 March was reported at A$3.29 billion), in line with expectations. Net profit increased to A$2.55 billion from a A$1.74 billion loss the year prior – driven by the spin-off of Clydesdale.
"Revenue is up, our asset quality remains sound and we have further strengthened our funding and capital positions," said chief executive Andrew Thorburn.
"There have been solid contributions across the business, in particular, our priority segments of small and medium business where we have maintained or grown our leading market shares."
NAB said bad loan charges rose 5.1 percent to A$394 million over the six months, while revenue increased 1.8 percent due to a growth in lending and stronger trading income.
Thorburn said the operating environment remained "challenging, including heightened regulatory change, digital disruption and increasing stakeholder expectations".
"But Australia's economic fundamentals provide a favourable backdrop including strong population growth and improving business conditions," he added.
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