The major bank posted a statutory net profit of $1.7 billion for the first quarter of 2021, the same amount it had recorded in the prior corresponding period.
Revenue slipped by 3 per cent, reflecting lower markets and Treasury income as it copped a hit from mark-to-market loss reversals in the second half of 2020.
Cash earnings came to $1.65 billion, a slight incline of 1 per cent from the prior corresponding period.
Meanwhile credit impairment charges, totalling $15 million for the quarter, were almost half (98 per cent down) of the quarterly average in 2H20.
NAB chief executive Ross McEwan commented improving economic trends had been a key driver of the result, with cash earnings surging from the 2H20.
“Improving economic and health outcomes in Australia and New Zealand are encouraging, as are the reductions we are seeing in deferral balances,” Mr McEwan said.
“However, there are still a number of uncertainties requiring further clarity. These include the impact on customers of ongoing health alerts and measures put in place to contain the spread of COVID-19, and the wind-down of deferral and JobKeeper programs.”
NAB has continued on its path to simplify and transform the business.
Further to its private bank revamp last year, the company added 440 new roles in the division during the quarter, with a further 110 to be added over the coming year.
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
