National Australia Bank (NAB) has revealed the full impact of COVID-19 with its first-half cash earnings down 51.4% as it entered a trading halt ahead of a capital raising.
MLC Wealth was also revealed as being amongst those elements of the bank to feel the pain, with the half-year result revealing a 46.2% decline over the same period last year.
The big banking group’s chief executive, Ross McEwan, said that the first half results had been materially impacted by the pandemic with cash earnings excluding notable items down 24.6% compared to the last year driven by higher credit impairment charges and mark to market losses on the bank’s high quality liquids portfolio within markets and treasury.
The bank reported a statutory net profit of $1,313 million.
Reflecting the tough times, the bank’s half-year result said members of the board and senior management would be taking a 20% reduction in their fees and remuneration for the second half.