NAB in earnings warning
(Australia) - A A$250 million writedown of its wealth management operations has hit profit forecasts at the National Australia Bank, with the bank warning that 2002-3 profits would come in at the lower end of its target range.
NAB's Chief Financial Officer Richard McKinnon told analysts in Sydney that difficult trading conditions in Europe and weaker than expected wealth management earnings had impacted full year growth.
He said the bank's first half performance was consistent with expectations of an 8 to 11 percent increase in cash earnings per share.
But it was now expecting to only hit the lower end of this target range for the current year.
Mr McKinnon also flagged a writedown of up to $250 million on NAB's funds management business MLC because of volatile equity markets in the first half.
The bank will also book a £16 million ($A41.68 million) pre-tax charge in the first half and £30 million in the second half to cover the cost of its European pension schemes.
The bank reports its half-year profit results next month.
He said the bank's first half performance was consistent with expectations of an 8 to 11 percent increase in cash earnings per share.
But it was now expecting to only hit the lower end of this target range for the current year.
Mr McKinnon also flagged a writedown of up to $250 million on NAB's funds management business MLC because of volatile equity markets in the first half.
The bank will also book a £16 million ($A41.68 million) pre-tax charge in the first half and £30 million in the second half to cover the cost of its European pension schemes.
The bank reports its half-year profit results next month.
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