NAB slides after disappointing first-quarter earnings
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More news: Shares in National Australia Bank have slid more than 7% to $36.72 in early trading after the banking major reported a drop in its first-quarter cash earnings and flagged deterioration in its business and private banking lending portfolio.
NAB, considered the country's top business lender, posted cash earnings of $1.74 billion, down from $1.8 billion a year ago and behind the Visible Alpha consensus estimate of $1.77 billion. It outlined credit impairment charges of $267 million, reflecting deterioration in its business and private banking lending portfolio and increased delayed mortgage payments.
NAB's first-quarter cash profit drops
The news: National Australia Bank has reported a drop in its first-quarter cash profit on the back of higher credit impairment charges and income tax expense.
The numbers: Unaudited cash profit for the three months to December was down 2% compared with the quarterly average of the preceding two quarters to $1.74 billion, reflecting $267 million in credit impairment charges. Its net interest margin saw a “small decline”, while expenses were up 2%.
The context: NAB attributed the lift in credit impairment charges to business lending and unsecured retail portfolio. The bank said its deposits had grown by 2% over the three month period, with home lending up by 1% and business loans growing by 2%.
““The economic outlook is improving but cost of living and interest rate challenges persisted during the first quarter. While most customers are proving resilient, we have maintained prudent balance sheet settings to allow us to support customers while keeping our bank safe,” CEO Andrew Irvine said.
The source: ASX
