NAB posts boosted earnings
(10 August 2011 – Australia) National Australia Bank recorded third-quarter cash earnings of A$1.4 billion, but warned about credit growth in all of its key markets.
The latest result was up from the A$1.1 billion recorded in the June quarter last year and compares to a first half profit of A$2.7 billion.
Revenue growth for the three months to June continued in each of the personal and business banking units as well as New Zealand, but this was offset by a drop in revenue from NAB's wholesale banking arm, with big businesses holding off investment plans.
NAB chief executive Cameron Clyne said "This was achieved despite considerable challenges including Australia's multi-speed economy, subdued credit growth and fragile consumer confidence in all the markets in which we operate.'
Helped by its mortgage discounting strategy, NAB continued to grow market share in its personal banking business however the bank said the pace of credit growth slowed while competition increased. This morning Commonwealth Bank slashed its fixed mortgage lending rates.
Despite a slowdown in the overall demand for business credit, NAB said its flagship business banking arm managed to grow lending volumes to small and mid-sized businesses while improving profit margins.
Revenue growth for the three months to June continued in each of the personal and business banking units as well as New Zealand, but this was offset by a drop in revenue from NAB's wholesale banking arm, with big businesses holding off investment plans.
NAB chief executive Cameron Clyne said "This was achieved despite considerable challenges including Australia's multi-speed economy, subdued credit growth and fragile consumer confidence in all the markets in which we operate.'
Helped by its mortgage discounting strategy, NAB continued to grow market share in its personal banking business however the bank said the pace of credit growth slowed while competition increased. This morning Commonwealth Bank slashed its fixed mortgage lending rates.
Despite a slowdown in the overall demand for business credit, NAB said its flagship business banking arm managed to grow lending volumes to small and mid-sized businesses while improving profit margins.
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