NAB’s bumper year
The National Australia Bank (NAB) has reported a strong profit for the 2006-07 period, according to chairman Michael Chaney, who revealed an 8.3 per cent increase in total income at the company’s annual general meeting today.
“These very pleasing results were achieved through the consistent delivery of what I believe has been a well-articulated strategy focused on strong revenue growth in chosen segments and the careful management of costs,” Chaney said.
Cash earnings of $4.4 billion were more than 17 per cent above those of the previous year and the full-year dividend increased from 15 cents to $1.82 per share.
“The bank is well capitalised and has strong funding capability, notwithstanding the current higher borrowing costs being experienced by all financial institutions,” he said.
Chaney warned shareholders that stresses from the US sup-prime market would drag on.
“It is widely expected that the US sub-prime fallout still has some way to go and will continue to have an indirect impact on our economy and customers,” he said.
NAB has not yet raised interest rates in response to the RBA’s reaction but is expected to do so within days.
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