Strong Quarterly Revenue for NAB

Submitted by Sharemarket News on 9 August, 2011 - 10:37

National Australia Bank (ASX:NAB) booked quarterly cash earnings of $1.4 billion but said the revenue came amidst challenging conditions.

Although revenue increased in the personal and business banking divisions for the three months to June, the growth was offset by a revenue cut from its wholesale banking unit.

NAB chief executive Cameron Clyne said: "This was achieved despite considerable challenges including Australia's multi-speed economy, subdued credit growth and fragile consumer confidence in all the markets in which we operate."

NAB said revenue growth, decreasing charges for bad and doubtful debts and cost management were behind the earnings spike.

The quarterly cash revenue was up from the $1.1 billion recorded in the same period last year. Net interest margin rose 2.32 percent, from 2.23 percent in the half year to March.

Charges for bad debts were 0.41 percent of gross loans at end of June 2011, or $443 million, compared with 0.41 percent at end of March 2011.

NAB said it raised around $29 billion of term wholesale funding from 1 October 2010 to 9 August 2011, against a full-year target of $25-30 billion.

Clyne said that while personal banking added customers and boosted revenue growth, trading opportunities were limited in wholesale banking due to currency and interest rate markets.