(16 August 2012 – Australia) As National Australia Bank (NAB) posted a flat June-quarter profit, chief executive Cameron Clyne noted the Australian economy was running at “10 speeds”, with a higher currency affecting key sectors in different ways.Clyne said states such as Queensland and Victoria were hardest hit by the export squeeze, leading to lower loan growth.
”There is much more nuance than the two-speeds in the [Australian] economy than is commonly referred to,” Clyne told analysts as NAB posted a June-quarter cash profit of A$1.4 billion.
The latest result fell just short of expectations but still puts the bank in line with its second consecutive year of record profits – possibly looking to record a full-year profit of about A$5.6 billion.
Compounding the problem of revenue growth for banks, business lending has been persistently sluggish since the global financial crisis. Some signs of increasing demand have, however, emerged in recent months.
Still, NAB continues to notch fast-paced growth in mortgages, helped by its strategy of discounting loans. Expansion of its mortgage book is running at 1.3 times growth in the broader market.