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National Australia Bank's full-year cash profit misses estimate on higher provisions

By Reuters News

Nov 5 (Reuters) - National Australia Bank NAB.AX posted a 13.4% drop in its full-year cash profit on Thursday, hurt by higher credit impairment charges and expenses.

The country's top business lender said cash profit came in at A$6.14 billion ($4.30 billion) for the year ended September 30, compared with A$7.09 billion last year and missing the Visible Alpha consensus estimate of A$6.33 billion.

Here are more details:

  • NAB booked a near 86% rise in credit impairment charges to A$1.55 billion for the year, equal to 0.19% of gross loans and advances, the highest since September 2020

  • "We have strengthened provisioning to reflect a more challenging environment of slowing growth, declining house prices, higher interest rates and inflationary pressures," the lender added in its statement

  • Excluding large notable items, cash earnings for the full year came in at A$7.09 billion, flat against the prior corresponding period

  • In Australia, "cost pressures continue to pose a material risk to the economy, while the correction in the housing market poses some additional downside risk to growth," NAB CEO Andrew Irvine said

  • Housing demand has fallen sharply since the government's May announcement to scrap property tax breaks, pressuring the big four banks, which hold over 70% of mortgages

  • The lender declared a final dividend of 85 Australian cents apiece, in line with 85 Australian cents a year ago



($1 = 1.4267 Australian dollars)

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