The National Australia Bank has left dividend steady at 99 cents after a modest 2.3 million rise in cash earnings to $3.29 billion for the six months to March 31.
That left the NAB’s cash profit more than $170 million behind the ANZ’s interim of $3.4 billion. The ANZ also left its interim payout steady, this time at 80 cents a share.
The NAB’s profit follows a weak first quarter effort of $1.6 billion, a dip of 1%. The statutory net profit for the half was $2.55 billion.
Revenue rose 1.8% in the half year and net interest margin (NIM) declined 11 points across the bank, or 4 points excluding markets and Treasury. the bank said the NIM was steady on the September half year.
The bank said its costs rose 0.8% in the half because of “higher personnel costs including redundancy charges, and increased technology depreciation and amortisation charges, partly offset by productivity savings.”
Bad debts rose $19 million or 5%: "The total charge for Bad and Doubtful Debts (B&DDs) was $394 million, up $19 million or 5.1%. The charge this period includes an increase in collective provision (CP) overlays of $89 million mainly for potential risks relating to the commercial real estate (CRE) portfolio.
“This is another solid result and reflects improving momentum as we execute on our strategy,” NAB Group CEO Andrew Thorburn said in the Thursday morning statement to the ASX.
“Revenue is up, our asset quality remains sound and we have further strengthened our funding and capital positions. Cost growth has moderated from 2017 first quarter levels as our productivity initiatives gain traction. Our ROE of 14% reflects our disciplined approach to capital allocation.
“There have been solid contributions across the business, in particular our priority segments of small and medium business where we have maintained or grown our leading market shares.
