NAB posts 16 percent profit rise
(18 May 2004 – Australia) National Australia Bank has posted a A$2.166 billion net profit for the six months to March 31, 2004, a 16 percent increase on the previous year’s figure.
NAB’s cash earnings dropped 8.7 percent to A$1.85 billion, a figure chief executive John Stewart described as disappointing.
He said the bank’s second half profit was likely to be flat on the first half and that the bank would require 12 to 24 months to get back on its feet.
The bank also announced it would raise up to A$3.1 billion to boost its capital reserves.
Stewart said Corporate & Institutional Banking had faced a difficult half due to the impact of the foreign currency options trading situation.
"A higher charge for doubtful debts, adverse currency movements and reduced demand for debt market products, due to a low US interest rate environment, affected cash earnings," he said.
"Despite these challenging circumstances the focus on growing core relationships has continued and this has resulted in the maintenance of a solid base of underlying client income.
"Corporate & Institutional Banking is actively contributing to the program to address the remedial actions required by APRA," Stewart said.
He said the bank’s second half profit was likely to be flat on the first half and that the bank would require 12 to 24 months to get back on its feet.
The bank also announced it would raise up to A$3.1 billion to boost its capital reserves.
Stewart said Corporate & Institutional Banking had faced a difficult half due to the impact of the foreign currency options trading situation.
"A higher charge for doubtful debts, adverse currency movements and reduced demand for debt market products, due to a low US interest rate environment, affected cash earnings," he said.
"Despite these challenging circumstances the focus on growing core relationships has continued and this has resulted in the maintenance of a solid base of underlying client income.
"Corporate & Institutional Banking is actively contributing to the program to address the remedial actions required by APRA," Stewart said.
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