NAB positive on first quarter
National Australia Bank (NAB) has revealed a solid performance in its first quarter update on the back of stronger cash earnings and a reduction in bad and doubtful debts, but is still weighed down by broader restructuring costs.
The big banking group said that on a statutory basis, unaudited net profit attributable to owners of the company for the December quarter was approximately $1.26 billion, with revenue having increased by 3 per cent based on "strength in wholesale banking and an expanded customer margin".
Commenting on the result, NAB chief executive Cameron Clyne said the company had delivered a strong result for the quarter, reflecting the underlying strength of its core Australian business and improved earnings in the United Kingdom.
Drilling down on divisional performances, the quarterly update said that NAB Wealth cash earning had been lower as disability insurance claims increased and lapse experience remained high.
It said this had been partially offset by stronger earnings from the investment business, with funds under management higher due to improved investment returns and stronger net flows from corporate superannuation.
Clyne flagged that the banking group would be providing a further update early next month to outline its progress with respect to its technology transformation, and "a refresh of the Group's medium-term strategic priorities, focusing on the role of technology in the business and the implications of changed economic and social conditions".
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