NAB announces earnings adjustments
National Australia Bank (NAB) has announced earnings adjustments ahead of its full-year results, mostly relating to its businesses in the UK.
The big banking group announced to the Australian Securities Exchange (ASX) today that while the items were subject to finalisation, it was expected that cash earnings of the year ended 30 September would be in the range of $5.1 billion to $5.2 billion.
Commenting on the issue, NAB chief executive, Andrew Thorburn described the reporting of large UK conduct charges and impairments was disappointing but was "being dealt with transparently and quicly and the underlying performance of the NAB Group remains strong".
"Taking these decisions gives us more clarity going into the future and allows us to focus onteh core Australian and New Zealand franchises, which remain in good shape," he said.
The ASX announcement referenced UK conduct charges and noted that the company's third quarter trading update had pointed to additional provisions in relation to both Payment Protection Insurance and interest rate hedging costs.
It said provisioning of $605 million had been made in relation to Payment Protection Insurance and $359 million in relation to interest rate hedging products, while a $220 million impairment charge had been taken with respect with capitalised software.
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