NAB reports $2.55 billion first half profit
National Australia has continued to reap the benefits of its strategy changes, reporting a first-half statutory net profit of $2.55 billion compared to the $1.74 billion loss it reported for the March 2016 half-year.
The big banking group said the improved result primarily reflected reduced losses from discontinued operations, and acknowledged that excluding those discontinued businesses statutory net profit decreased by 11.4 per cent.
The Board announced an interim dividend of 99 cents per share, fully franked.
The half-year results pointed to NAB continuing to struggle in its wealth businesses, with the Consumer Banking and Wealth division reporting stable cash earnings of $764 million “impacted by higher funding costs, increased competition in home lending and reduced wealth income”.
Commenting on the result, NAB Group chief executive, Andrew Thorburn described it as “solid” and said it reflected improved momentum as the company executed its strategy.
He said the operating environment for banks remained challenging, including heightened regulatory change, digital disruption and increasing stakeholder expectations.
However Thorburn said Australia’s economic fundamentals provided a favourable backdrop including strong population growth and improving business conditions.
Recommended for you
BlackRock Australia plans to launch a Bitcoin ETF later this month, wrapping the firm’s US-listed version which is US$85 billion in size.
Financial advisers have expressed concern about the impact including private market exposure is having on their tracking error budget, according to MSCI.
State Street will restrict its membership of global climate alliance Net Zero Asset Managers after the organisation dropped its flagship 2050 goals amid ESG backlash from the US.
Betashares has launched a global shares and a global infrastructure ETF as part of the firm’s strategic expansion strategy to support financial advisers in building more diversified portfolios.
