NAB turnaround almost complete
(11 May 2007 – Australia) National Australia Bank has posted interim cash earnings of A$2.196 billion, up almost 23 percent on the previous year.
The cash earnings figure included A$101 million in hedged gains which displeased some analysts but the underlying performance showed that NAB’s publicly stated three year turnaround ambition is being realised.
Importantly, the bank managed to increase revenue and lending whilst maintaining margins and keeping operating costs in check.
As was the case with Westpac and St George, NAB’s wealth management division put in a strong performance, growing by 26.2 percent to A$183 million.
Business lending, retail deposits and investment sales also performed strongly in the half year to March 2007.
In the bank’s UK business, cash earnings grew 22.6 percent to £130 million and the volume of predominantly broker originated mortgage lending grew 23.8 percent.
Business lending in New Zealand grew 14.1 percent, while competition in the housing and credit card markets saw net interest rate margins dip.
NAB group CEO John Stewart said the bank had worked hard to improve its culture and recruit quality staff at all levels of the bank.
"We continue to invest in our people and network with new sales and business training for frontline staff, increased capability in mortgages and business lending and the development of new incentive programs," he said.
Importantly, the bank managed to increase revenue and lending whilst maintaining margins and keeping operating costs in check.
As was the case with Westpac and St George, NAB’s wealth management division put in a strong performance, growing by 26.2 percent to A$183 million.
Business lending, retail deposits and investment sales also performed strongly in the half year to March 2007.
In the bank’s UK business, cash earnings grew 22.6 percent to £130 million and the volume of predominantly broker originated mortgage lending grew 23.8 percent.
Business lending in New Zealand grew 14.1 percent, while competition in the housing and credit card markets saw net interest rate margins dip.
NAB group CEO John Stewart said the bank had worked hard to improve its culture and recruit quality staff at all levels of the bank.
"We continue to invest in our people and network with new sales and business training for frontline staff, increased capability in mortgages and business lending and the development of new incentive programs," he said.
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