Clydesdale demerger weighs on NAB result

By Reporter
 — 1 minute read

NAB has posted a statutory net loss of $1.74 billion as a result of the demerger and IPO of its UK banking business, Cydesdale and Yorkshire Bank.

The sale of Clydesdale and Yorkshire Bank forced NAB to register a $4.22 billion loss on its balance sheet, resulting in a statutory net loss of $1.74 billion.

However, cash earnings for the bank were $3.31 billion, up 6.5 per cent compared to the March 2015 half-year.


NAB's revenue rose by 3.3 per cent and the bank reported that its dividend remained unchanged at 99 cents per share fully franked.

"NAB Wealth has continued its track record of delivering significantly improved results since 2013. The long-term partnership and sale of 80 per cent of our Life Insurance business to Nippon Life is progressing well and remains on track for finalisation in the second half of calendar year 2016," NAB Group chief executive Andrew Thorburn said.

"This important transaction allows us to continue to provide insurance solutions to customers while improving Wealth returns for shareholders. In addition, we know there is strong upside for our investments and superannuation business from enhancing the customer experience and developing a closer relationship with our banking operations."

NAB said in its investor presentation that it would further develop its direct offering for both superannuation and insurance via NAB internet banking.

The bank said it planned to invest "at least" $300 million pre-tax over four years in its superannuation and investments business and would improve digital advice tools both for customers and advisers.

Furthermore, NAB said it planned to consolidate to create one of Australia's "largest superannuation funds" which, according the bank, would provide scale and simplification benefits, reduce IT complexity and provide a more consistent customer experience.

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Clydesdale demerger weighs on NAB result
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