12.5 percent earnings drop acceptable, NAB says
(11 May 2005 – Australia) National Australia Bank has announced a first half cash earnings drop of 12.5 percent compared with the corresponding period a year ago but said it improved slightly on the September 2004 half.
NAB chief executive John Stewart described the performance as "good progress".
"We have done what we said we would do. We have made an acceptable start but there is a lot more work to do over the next two to three years," he said.
Stewart said the bank’s earnings had bottomed but market share in housing and business lending had stabilised.
"Our cost base is still too high but expense growth has been carefully managed and asset quality remains sound," he said.
Over the fist half the bank suffered a large robbery from one of its Irish banks and litigation in South Korea.
Stewart said despite this the bank had made steady progress.
"We have moved to a regional business model, reopened the foreign currency options trading desk and sold the Irish banks at an attractive profit," he said.
In Australia, the bank’s cash earnings before significant items were down 6.5 percent on the March 2004 half year but had risen by 5.1 percent on the September 2004 half, reflecting growth in business and housing lending and retail deposits.
"We have done what we said we would do. We have made an acceptable start but there is a lot more work to do over the next two to three years," he said.
Stewart said the bank’s earnings had bottomed but market share in housing and business lending had stabilised.
"Our cost base is still too high but expense growth has been carefully managed and asset quality remains sound," he said.
Over the fist half the bank suffered a large robbery from one of its Irish banks and litigation in South Korea.
Stewart said despite this the bank had made steady progress.
"We have moved to a regional business model, reopened the foreign currency options trading desk and sold the Irish banks at an attractive profit," he said.
In Australia, the bank’s cash earnings before significant items were down 6.5 percent on the March 2004 half year but had risen by 5.1 percent on the September 2004 half, reflecting growth in business and housing lending and retail deposits.
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