NAB cash earnings up 20% to $1.1 billion
February 18, 2010
National Australia Bank Limited (NAB), in its December quarter trading update this morning, said unaudited cash earnings were around $1.1 billion, as the bank said there was a decline in the amount charged for bad and doubtful debts. The result, up 20% from the previous corresponding period, included $33 million from recent acquisitions.
CEO, Cameron Clyne, said it was a ‘sound’ result for the bank.
”This was achieved despite subdued credit growth, heightened competitive pressures and a continued upward trend in average funding costs,” Mr Clyne said.
Referring to the reduction in bad and doubtful debts, Mr Clyne said that given the fragile global recovery and uncertain regulatory environment, a conservative approach to capital and liquidity management remained appropriate.
The group charge for bad and doubtful debts in the December quarter was $202 million lower at $739 million compared to the September 2009 quarter.
Meanwhile, Mr Clyne said the banks focus on cutting banking fees was resonating well with customers.
”In the financial year to the end of January, new transaction account openings are up by 25%, while closures have fallen by 22% compared to the same time last year,” Mr Clyne said.
The bank said its UK operations, which have been particularly hard hit through the GFC, continued to face challenges.
However, Mr Clyne painted a more promising outlook.
“Our United Kingdom franchise remains well positioned to benefit from any improvement in operating conditions," Mr Clyne said.
"We will continue to monitor market developments in the UK.”
The bank’s capital position was also strong, with the Tier 1 ratio increasing to 9.3% from 9.0% at 30 September 2009.
Mr Clyne declined to comment on the proposed acquisition of AXA Asia Pacific, other than to say work to finalise the company's proposal to acquire the Australian and New Zealand businesses of AXA APH was ‘on-going’.
At the close Thursday, NAB shares were trading at $25.95.
CEO, Cameron Clyne, said it was a ‘sound’ result for the bank.
”This was achieved despite subdued credit growth, heightened competitive pressures and a continued upward trend in average funding costs,” Mr Clyne said.
Referring to the reduction in bad and doubtful debts, Mr Clyne said that given the fragile global recovery and uncertain regulatory environment, a conservative approach to capital and liquidity management remained appropriate.
The group charge for bad and doubtful debts in the December quarter was $202 million lower at $739 million compared to the September 2009 quarter.
Meanwhile, Mr Clyne said the banks focus on cutting banking fees was resonating well with customers.
”In the financial year to the end of January, new transaction account openings are up by 25%, while closures have fallen by 22% compared to the same time last year,” Mr Clyne said.
The bank said its UK operations, which have been particularly hard hit through the GFC, continued to face challenges.
However, Mr Clyne painted a more promising outlook.
“Our United Kingdom franchise remains well positioned to benefit from any improvement in operating conditions," Mr Clyne said.
"We will continue to monitor market developments in the UK.”
The bank’s capital position was also strong, with the Tier 1 ratio increasing to 9.3% from 9.0% at 30 September 2009.
Mr Clyne declined to comment on the proposed acquisition of AXA Asia Pacific, other than to say work to finalise the company's proposal to acquire the Australian and New Zealand businesses of AXA APH was ‘on-going’.
At the close Thursday, NAB shares were trading at $25.95.
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