Steady as she goes for NAB
(12 May 2006 – Australia) National Australia Bank met analyst expectations with a A$1.99 billion net profit but group chief executive John Stewart admitted the bank was still a work in progress.
"The progress in the last six months shows our businesses are building momentum but much still remains to be done. We continue to be focussed on the four areas of culture change, compliance and risk, business efficiency and revenue growth," he said.
NAB’s cash earnings before significant items were up 11.4 percent on the corresponding period a year ago, and 14.9 percent on the September 2005 half year.
Operating expanses increased to A$3.93 billion from A$3.90 billion a year ago but dropped 3.9 percent on the previous half year.
Stewart said business lending in Australia grew above system, and that NAB’s high yield online accounts, iSaver and Business Cash Maximiser, supported a better than industry growth rate in deposits.
"The solid overall performance by the Australian region was underpinned by volume growth balanced with careful margin management. Total banking expenses declined by 0.7 percent compared with the September 2005 half year," Stewart said.
"Banking revenue increased by 8.2 percent compared with the March 2005 half year. Asset quality remains strong with the ratio of gross non accrual loans to gross loans and acceptances steady at 0.22 percent."
NAB’s UK operations, Clydesdale and Yorkshire banks, grew cash earnings by 13.7 percent; while its New Zealand business increased cash earnings by 1.7 percent, in the local currencies.
NAB’s cash earnings before significant items were up 11.4 percent on the corresponding period a year ago, and 14.9 percent on the September 2005 half year.
Operating expanses increased to A$3.93 billion from A$3.90 billion a year ago but dropped 3.9 percent on the previous half year.
Stewart said business lending in Australia grew above system, and that NAB’s high yield online accounts, iSaver and Business Cash Maximiser, supported a better than industry growth rate in deposits.
"The solid overall performance by the Australian region was underpinned by volume growth balanced with careful margin management. Total banking expenses declined by 0.7 percent compared with the September 2005 half year," Stewart said.
"Banking revenue increased by 8.2 percent compared with the March 2005 half year. Asset quality remains strong with the ratio of gross non accrual loans to gross loans and acceptances steady at 0.22 percent."
NAB’s UK operations, Clydesdale and Yorkshire banks, grew cash earnings by 13.7 percent; while its New Zealand business increased cash earnings by 1.7 percent, in the local currencies.
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