NAB has posted an increase in cash earnings for the financial year ending 30 September to $7.10 billion, up 8.3 per cent on the previous year.
In its full-year results released on Wednesday, the bank reported an 8.3 per cent rise in statutory net profit to $6.89 billion and an 11.5 per cent lift in underlying profit to $10.00 billion.
“This outcome reflects continued execution of our strategy including targeted volume growth and a disciplined approach to managing costs while investing for growth,” NAB CEO Ross McEwan said.
“After 11 years of interest rate reductions, earnings have also benefited in FY22 from the rising interest rate environment.”
Revenue increased by 8.9 per cent on the back of higher volumes and slightly higher margins excluding the markets and treasury business, while gross loans and advances grew 9.3 per cent and deposits rose by 13.3 per cent.
Mr McEwan said that NAB’s ongoing focus on strong balance sheet settings has been key to delivering sustainable growth and keeping the bank safe.
“Maintaining these settings is important during the current economic uncertainty, with higher interest rates and higher inflation likely to challenge some customers,” he said.
“However, strong employment conditions along with substantial household and business savings give us confidence in the resilience of our customers and the broader economy.”
Cash earnings for NAB’s business and private banking division surged 21.5 per cent to $3.01 billion driven by higher revenue in reflection of strong volume growth and higher margins along with lower credit impairment charges.
Meanwhile, earnings in the personal banking division (excluding Citi’s consumer business) were down 3.6 per cent to $1.59 billion, which NAB said primarily reflected the impact of home lending competition on margins.
The bank reported a 5.8 per cent increase in expenses, with higher remuneration and volume-related costs, higher technology and investment costs, and increased financial crime and remediation spend said to be the key drivers, partly offset by productivity benefits.
NAB also declared a fully franked final dividend of $0.78 per share, taking its dividend for the full-year to $1.51 per share, up from $1.27 in the previous financial year.
“Our strategy is long term, and is not dependent on any particular operating environment or economic conditions. It is centred around an enduring ambition to improve the outcomes for our customers and colleagues,” Mr McEwan said.
“We have made good progress over the past two years which positions us well for a changing environment. However, there is more we can do. We will continue to remain focused on the disciplined execution of our strategy to support sustainable growth in earnings and shareholder returns over time.”
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
