NAB disappoints despite A$3.37 billion result
(Australia) - Australia's largest bank, the National Australian Bank, saw its share price plummet more than 5 percent despite announcing a net profit of A$3.37 billion for the year to September 30.
Analysts had expected a better result from the NAB, despite the profit figure representing a 62 percent improvement on last year's A$2.08 billion, when the bank was hit with write-offs from its Homeside lending business in the US.
Analysts polled in the days before the announcement had predicted a result in the range of A$3.83 billion to A$4.11 billion.
Forecasts of earnings per share growth of between 8 and 11 percent, and an unexpected decision to wind back tax credits on dividends also disappointed the market.
NAB chief Frank Cicutto was circumspect on the bank's ambitions in the UK, where it has been linked with Abbey National, and declined to comment on the situation with local rival St George, in which NAB holds a 10 percent stake.
Analysts polled in the days before the announcement had predicted a result in the range of A$3.83 billion to A$4.11 billion.
Forecasts of earnings per share growth of between 8 and 11 percent, and an unexpected decision to wind back tax credits on dividends also disappointed the market.
NAB chief Frank Cicutto was circumspect on the bank's ambitions in the UK, where it has been linked with Abbey National, and declined to comment on the situation with local rival St George, in which NAB holds a 10 percent stake.
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