National Australia Bank (NAB) has said that cash earnings at its wealth division were broadly stable in the third quarter.
Over all, NAB group’s unaudited cash earnings rose to approximately A$1.5 billion, which is around 2% above the quarterly average of the March 2013 half year result.
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On a statutory basis, unaudited net profit attributable to the owners of the company for the June quarter was approximately A$1.7 billion. The main difference between statutory and cash earnings relates to fair value and hedge ineffectiveness.
The group’s revenue increased by approximately 1% reflecting good growth in mortgages and some improvement in customer margin.
The group’s expenses rose 2% over the period including upfront implementation costs relating to previously announced changes to the group’s organizational structure and operating model, and increased provisions for UK conduct and redress matters.
The group in its financial statement revealed that its Basel III Common Equity Tier 1 ratio was 7.97% as at 30 June 2013, lower than the ratio at 31 March 2013 mainly due to the impact of the interim 2013 dividend declaration in May 2013.
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By GlobalDataNAB group CEO Cameron Clyne said: "NAB has produced a solid third quarter result reflecting strong momentum in personal banking and lower loan losses in our UK businesses.
"We’ve marked the fourth year of our Fair Value agenda, leading the industry in making banking fairer, simpler and more affordable, and improving the strength and sustainability of our Australian business. The success of that strategy remains evident in our personal banking business which continues to benefit from mortgage market share gains. While operating conditions for business banking are challenging, with ongoing weak confidence and subdued volumes, NAB remains strongly committed to supporting business customers."
