NAB reports $6.48bn profit, holds dividend steady

NAB reports $6.48bn profit, holds dividend steady

The National Australia Bank has announced cash earnings of $6.48 billion for the full year ending September 2016, as well as an unchanged dividend.


In its full-year annual result to 30 September 2016, NAB announced an increase in its cash profit of 4 per cent to $6.48 billion.

The bank maintained its final dividend at 99 cents per share fully franked, unchanged from the 2016 interim and 2015 final dividends.

On a statutory basis, net profit attributable to the owners of the company was $352 million, down 94.4 per cent, reflecting the loss on sale of the UK banking operation and 80 per cent of NAB Wealth's life insurance business.

Return on equity for NAB for the cash profit was 14.3 per cent, and revenue increased by 2.5 per cent.

Expenses were up 2.2 per cent on the previous year, and the charge for bad and doubtful debts rose 7 per cent to $800 million (largely attributable to the impairment of a "small number of single name exposures in Australian banking").

NAB's common equity tier 1 ratio was 9.8 per cent as at 20 September 2016, an increase of 8 basis points from 31 March 2016 reflecting the partial sale of NAB Wealth's life insurance business.

Commenting on the result, NAB chief executive Andrew Thorburn said it has been a "milestone year" for the company as it divested from its UK banks and 80 per cent of NAB Wealth's life insurance business.

"NAB moves into 2017 a reshaped business – stronger, simpler and focused on helping our customers in Australia and New Zealand," Mr Thorburn said.

"NAB is well positioned to deliver improved customer outcomes and attractive returns for shareholders in the year ahead, with a clear plan and the right organisational structure in place."

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NAB reports $6.48bn profit, holds dividend steady
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