National Australian Bank (NAB) is the last of the big four banks to declare its gain from the Visa IPO, reporting an after- tax gain of $221 million.
NAB said it made an after-tax gain of about $221 million which comprises amounts of $181 million and $40 million arising in its Australian and New Zealand businesses respectively.
Banks all over the world freed up shares for the float, to allow Visa to proceed with the listing without issuing more shares, a step which would have diluted the value of the existing shares.
“The majority of the gain will be offset through the creation of a one-off central bad and doubtful debt provision against the current uncertain global economic environment,” the bank said in a statement.
“This action will further strengthen the NAB balance sheet and better position NAB to withstand any future economic volatility. The remainder will be used to fund a new organic business development initiative around a deposit-focused stardirect on-line banking offer. This will not be used to fund business as usual operating expenditure.”
The Commonwealth Bank declared a gain of $355 million after it sold 51% of its Visa shares into the IPO, and St George said it is to realise a gain of $75 million before tax in its half-year results due out on Monday, in which it will be treated as a significant item.
Westpac said it gained $270 million last week, and ANZ made a $350 million gain.
Commonwealth Bank gained 40 cents to $42.71, ANZ fell rose 67 cents to $23.18, Westpac was down 68 cents to $23.90, National Australia Bank shed 79 cents to $29.96 and St George Bank shed $1 to $25.82.
