SYDNEY - National Australia Bank has recorded quarterly cash earnings of A$1.1 billion ($1.39 billion), in line with the quarterly average of the first half, as personal and business lending grew.
Personal banking cash earnings rose in the three months to June compared with the quarterly average of the first
half, as Melbourne-based NAB succeeded in building the franchise, the bank said in a statement yesterday.
NAB chief executive Cameron Clyne said customers had responded to the bank's reduction in penalty and other fees, and its interest rate pricing, which has been below the other three big banks.
"Personal banking began to reap the benefit of fee reductions and other initiatives with strong growth in mortgages and new transaction account openings," Clyne said.
"Having demonstrated strong support for customers during challenging times, and with additional bankers and specialists, business banking is well placed to benefit from a recovery in business credit growth."
The bank said personal and business lending growth helped increase revenue, which was still below the first half quarterly average because of increased credit spreads.
NAB said the average cost of wholesale funding continued to rise during the quarter, although the bank was able to keep its net interest margin stable.
It said it had raised A$24 billion of its target of A$20 billion to A$25 billion of wholesale funding for the year.
NAB said it maintained a conservative liquidity position with a Tier 1 capital ratio of 8.79 per cent at June 30, slightly down from the 9.09 per cent at March 31.
"The combination of strong capital and sound funding positions gives us the flexibility and capacity to grow in line with our strategic agenda," Clyne said.
The bank said the integration of Aviva's Australian and New Zealand operations, which it bought last year, was going well.
NAB said its business bank continued to be the largest in Australia with market share of 22.3 per cent, up slightly during the three months to June, as overall business lending fell by 1.1 per cent.
NAB said the ratio of impaired assets to gross loans was 1.91 per cent, up slightly from the 1.86 per cent at the end of March.
Collective provisions were steady at A$3.63 billion.
Total provisions rose slightly by June 30 to A$5.38 billion from three months earlier.
- AAP
SYDNEY - National Australia Bank has recorded quarterly cash earnings of A$1.1 billion ($1.39 billion), in line with the quarterly average of the first half, as personal and business lending grew.
Personal banking cash earnings rose in the three months to June compared with the quarterly average of the first
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