Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  National Australia Bank Ltd.    NAB   AU000000NAB4

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

National Australia Bank Ltd. : Australia's NAB Posts Record Cash Earnings As Profit Slumps

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/10/2012 | 02:22am CET

--NAB reports 6% rise in 1H12 cash earnings to record A$2.83 billion

--Net profit for the period fell 15.5% to A$2.05 billion fueled by U.K. bad debt

--Bad debt overall rose to A$1.13 billion in six months to March 31

(Adds details of U.K. operations in paragraphs 5-6, analyst comment in 9th.)

By Caroline Henshaw

Of

National Australia Bank Ltd. (NAB.AU) followed its peers in reporting record cash earnings for the first half of fiscal 2012, even as ballooning impairments from its embattled U.K. banks dragged on profits.

Melbourne-based NAB, Australia's fourth-largest lender by market value, said Thursday that net profit in the six months to March 31 fell 15.5% to A$2.05 billion, down from A$2.43 billion a year earlier, as deteriorating economic conditions in Europe saw bad debts surge to A$1.13 billion.

Strong performance from its Wholesale and New Zealand operations saw cash earnings--which smooth out one-time items--rise 6% to A$2.83 billion, up A$160 million from A$2.67 billion over the same period in 2011 and in line with analyst estimates.

"The Australian franchise continued to perform well and market share was further strengthened during the period, despite an increasingly competitive environment," said NAB Group Chief Executive Cameron Clyde. "This was a solid result, particularly considering the increasingly difficult operating conditions for U.K. banking during the period."

NAB's U.K. business continued to weigh on the Australian lender's performance as Europe's debt crisis deepened and helped drive the country into recession this year.

Last month, NAB said it would incur GBP195 million ($317 million) in restructuring costs, write off GBP141 million of goodwill from Clydesdale Bank, and book an additional GBP120 million impairment charge related to protection-insurance claims in the U.K.

However, a 31.8% surge in cash earnings from the group's Wholesale Banking division, combined with better results from its Personal, Business and New Zealand operations helped to steady the bank's overall result.

Cash earnings at the company's asset-management arm declined 3.7% due to insurance lapses, while funds under management rose 3.9% to A$4.6 billion on the back of acquisitions, the lender said in a statement.

"Excluding for sales, trading and treasury income of A$495 million was 7% above average half-yearly earnings from the first half of 2008 to the second-half of 2011," said Goldman Sachs analyst Ben Koo.

"We expect recent loan re-pricing initiatives to provide some revenue benefit into the second half of 2012, and as such do not expect any major changes to consensus numbers," he added.

NAB restated its pledge to offer the lowest home-loan rates of all the major lenders. Australian banking operations gained market share during the half year in an "increasingly competitive environment," it said in the statement, with the business banking unit growing its share of lending by 70 basis points, and personal banking by 90 basis points.

The group's net-interest margin fell by 11 basis points from a year ago to 2.17%, largely as a result of higher wholesale and deposit funding costs in both its domestic and international operations. Over the half, NAB raised A$14.46 billion of term wholesale funding, it said.

NAB will pay an interim dividend of 90 cents a share, up from 84 cents in the same period a year earlier.

-By Caroline Henshaw, Dow Jones Newswires; 61-2-8272-4689; caroline.henshaw@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NATIONAL AUSTRALIA BANK LT
12/08 FlexiGroup Prices Private Placement of USD70.87 Million Class A1 Notes
12/08 FlexiGroup Prices Private Placement of USD47.11 Million Class A1 Notes
12/08 FlexiGroup Prices Private Placement of USD9.71 Million Class B Notes
12/08 FlexiGroup Prices Private Placement of USD11.54 Million Class C Notes
12/08 FlexiGroup Prices Private Placement of USD8.09 Million Class D Notes
12/08 FlexiGroup Prices Private Placement of USD6.07 Million Class E Notes
12/08 FlexiGroup Prices Private Placement of USD10.12 Million Class F Notes
12/08 RATING ACTION : Moody's assigns definitive Aaa to NAB's Series 28 mortgage cover..
12/07 NATIONAL AUSTRALIA BANK : Dollar slips as dairy prices rise
12/05 NATIONAL AUSTRALIA BANK : Some big retailers abolish expiry dates on gift cards
More news
Sector news : Banks - NEC
12:58aDJWESTPAC BANKING : Expects Asset Quality to Remain Sound in Year Ahead
12:40a Time Inc hires bankers to explore takeover, partnership interest - WSJ
12:09a U.S. SEC enforcement chief Ceresney to depart at year-end
12/08 UniCredit sells Polish assets ahead of share issue
12/08 ROYAL BANK OF SCOTLAND : RBS ordered to hand over documents in shareholder cash ..
More sector news : Banks - NEC
News from SeekingAlpha
10/03 INTERNATIONAL EQUITIES : The Case For Australia And The Case Against Latin Ameri..
09/15 The Australian Market Is Looking Like A Bargain Now
08/23 AUSTRALIAN BANKS REVISITED : A Good Moment To Increase The Short
06/02 U.S. Hedge Funds And The Big, Bad Aussie Short That Could Render Them Broke
05/25 AUSTRALIAN BANKS : On Thin Ice
Advertisement
Financials ( AUD)
Sales 2017 17 555 M
EBIT 2017 9 823 M
Net income 2017 6 563 M
Debt 2017 -
Yield 2017 6,42%
P/E ratio 2017 11,98
P/E ratio 2018 11,81
Capi. / Sales 2017 4,39x
Capi. / Sales 2018 4,23x
Capitalization 77 083 M
More Financials
Chart NATIONAL AUSTRALIA BANK LT
Duration : Period :
National Australia Bank Lt Technical Analysis Chart | NAB | AU000000NAB4 | 4-Traders
Full-screen chart
Technical analysis trends NATIONAL AUSTRALI...
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 29,0  AUD
Spread / Average Target -0,02%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Andrew Gregory Thorburn Group CEO, Director & Managing Director
Kenneth Ross Henry Chairman
Anthony Cahill Chief Operating Officer
Gary Lennon Group Executive-Finance
David Boyle Chief Information Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
NATIONAL AUSTRALIA BAN..-1.36%57 738
JPMORGAN CHASE & CO.27.32%300 825
WELLS FARGO & CO5.37%287 678
INDUSTRIAL AND COML BA..-0.87%231 690
BANK OF AMERICA CORP34.11%228 071
CHINA CONSTRUCTION BAN..-3.11%188 856
More Results