NAB hones in on earnings forecast, loses AMP shares
(Australia) National Australia Bank has told shareholders that it is on track to hit its earnings forecast for FY 2003.
National CEO Frank Cicutto said the bank would "deliver full cash earnings per share growth at the bottom of our eight to 11 percent range, despite adverse exchange rate impacts".
While mention of AMP was conspicuous by its absence, he said the bank’s "underlying resilience" gave it the "flexibility to consider a wide range of strategic options".
Cicutto said the bank had more than 900 branches and three million customers in Australia, but the small domestic market meant National had to "look offshore to sensibly grow [its] business".
"On balance, I believe the National can be proud of its international strategy and the benefits it has created for shareholders," Cicutto said.
"Our international expansion clearly differentiates us from our Australian peers. Some people are surprised to learn that the National ranks in the top 20 global banks by market capitalisation."
Cicutto said the bank’s UK operation, which accounts for about a quarter of its overall profit, had total assets of about A$92 billion and last year earned A$1,350 million.
He said the bank was in the process of implementing a change program that would make its UK operation a "more nimble, competitive force".
In further National news, the bank said last week it hadn’t ruled out going after more shares in AMP despite being knocked-back when trying to up the bank’s stake to 11 percent.
National chief executive Frank Cicutto told journalists he was "comfortable" with the bank’s current 5.4 percent stake in AMP and would await demerger documents regarding AMP’s UK operation before making fresh moves.
Since then, however, the bank’s stake has fallen to less than five percent after independent fund managers sold shares in the stock.
National previously attempted to snare 174 million shares, or 11 percent, but could only increase its original stake of 3.1 percent to 5.4 percent when the bank was unable to find enough investors willing to part with their AMP stock.
While mention of AMP was conspicuous by its absence, he said the bank’s "underlying resilience" gave it the "flexibility to consider a wide range of strategic options".
Cicutto said the bank had more than 900 branches and three million customers in Australia, but the small domestic market meant National had to "look offshore to sensibly grow [its] business".
"On balance, I believe the National can be proud of its international strategy and the benefits it has created for shareholders," Cicutto said.
"Our international expansion clearly differentiates us from our Australian peers. Some people are surprised to learn that the National ranks in the top 20 global banks by market capitalisation."
Cicutto said the bank’s UK operation, which accounts for about a quarter of its overall profit, had total assets of about A$92 billion and last year earned A$1,350 million.
He said the bank was in the process of implementing a change program that would make its UK operation a "more nimble, competitive force".
In further National news, the bank said last week it hadn’t ruled out going after more shares in AMP despite being knocked-back when trying to up the bank’s stake to 11 percent.
National chief executive Frank Cicutto told journalists he was "comfortable" with the bank’s current 5.4 percent stake in AMP and would await demerger documents regarding AMP’s UK operation before making fresh moves.
Since then, however, the bank’s stake has fallen to less than five percent after independent fund managers sold shares in the stock.
National previously attempted to snare 174 million shares, or 11 percent, but could only increase its original stake of 3.1 percent to 5.4 percent when the bank was unable to find enough investors willing to part with their AMP stock.
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