NAB bad and doubtful debts up 55 per cent
Bad and doubtful debts for National Australia Bank in the Australian region are up by 55 per cent, according to documentation lodged with the Australian Securities Exchange today.
NAB chief executive Ahmed Fahour used an Australian Region market update to reveal that the 55 per cent increase in bad and doubtful debt charges reflected the tightening in credit markets and a slowdown in economic growth.
He said the charge included increases across the portfolio with higher specific provisions generated across business and private banking and in particular, the impairment of one large business client in the March 2008 half.
Notwithstanding the difficulties, Fahour said that the Australian region had continued to deliver excellent results in a challenging market, demonstrating increased revenue growth and a tight focus on cost control.
He said MLC continued to perform well in very difficult investment markets with underlying cash earnings of $408 million slightly ahead of the prior period.
“This result reflects the diversification of the MLC business model including a strong and growing insurance business, accompanied by the retail platform ‘MasterKey’, which is supported by MLC’s manager of manager’s investment process,” Fahour said.
He said MLC’s advice network continued to grow strongly as an outcome of the commitment to running a sustainable and transparent business model.
AUTHOR
Mike Taylor
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