Turnaround nearly there as NAB delivers bumper profit
(6 November 2006 – Australia) National Australia Bank’s much talked about "turnaround" from the dark days of 2004 would seem to be complete after the bank posted a A$4.4 billion full year net profit.
NAB group chief executive John Stewart who has been steering the turnaround since taking over from former boss Frank Cicutto in the wake of the foreign exchange option saga, said the result followed "two and half years of detailed planning, hard work and careful implementation".
"We have faced the issues that confronted National Australia Bank in 2004 and are fundamentally changing our culture and the way we run the business so that we can consistently grow shareholder value," Stewart said.
The bank delivered cash earnings growth of 21.9 percent to A$3.97 billion on the back of strong lending growth and a good performance from the UK business.
NAB said banking cash earnings before significant items increased 12.7 percent to A$2,045 million due to robust volume growth and careful margin management. The bank grew its business lending and retail deposits market share.
The bank announced a A$500 million share buy back.
Stewart said there were signs of emerging credit quality weakness in personal lending in Australia and the UK.
"We have faced the issues that confronted National Australia Bank in 2004 and are fundamentally changing our culture and the way we run the business so that we can consistently grow shareholder value," Stewart said.
The bank delivered cash earnings growth of 21.9 percent to A$3.97 billion on the back of strong lending growth and a good performance from the UK business.
NAB said banking cash earnings before significant items increased 12.7 percent to A$2,045 million due to robust volume growth and careful margin management. The bank grew its business lending and retail deposits market share.
The bank announced a A$500 million share buy back.
Stewart said there were signs of emerging credit quality weakness in personal lending in Australia and the UK.
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