NAB results: National Australia Bank profit jumps on higher revenues, productivity gains
NAB has flagged cost out programs and more lending helped its profit jump in the December quarter.
National Australia Bank said its normalised cash profit jumped 11 per cent to $2.02 billion in the December quarter, versus the prior corresponding quarter.
The lender said the result benefited from increased revenue from business lending and cost-out programs that boosted productivity and saw its overall profit margin rise fractionally on the prior comparable quarter.
“Disciplined execution of our strategy has delivered further progress this quarter across our key priorities of growing business banking, driving deposit growth and strengthening proprietary home lending,” said Andrew Irvine, the bank’s chief executive.
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The bank’s cash earnings rose 15 per cent versus the average of the prior six month period as it said it benefited from lower bad debts equal to $170 million and higher earnings on deposits.
Total lending volumes for the quarter ending December 31, grew 1 per cent to $792.5 billion, versus the September quarter. The bank’s total business lending stood at $336.2 billion, with home loans at $442.4 billion.
Shares have jumped 13 per cent over the last six months and last closed at $45.34.
More to come.
