NAB plans to introduce new technology after “disappointing” cash earnings decline to $5.18 billion
Article by Rebeccah Elley
The National Australia Bank today released its 2014 Full Year Result, which showed a 9.8% downward slide from the previous year in cash earnings to $5.18 billion.
NAB chief executive officer Andrew Thorburn said that while the Australian and New Zealand franchises are in good shape, the full year result for the UK was “disappointing.”
The Big Four bank indicated the dip in earnings was due to “UK conduct provisions, capitalised software impairment, deferred tax asset provisions and R&D tax policy change totalling $1.5 billion after tax for the 30 September 2014 full year.”
“While satisfied with the progress our Australian business is making, there is more we can do.” Thorburn said. “It is essential we continue to invest in core businesses where we have real competitive advantage, especially housing lending and, in Business Banking our SME, agriculture, government and education, and health franchises. More broadly, we have a number of solid businesses from which to build a stronger bank.”
Thorburn pointed to technology as a “critical enabler” of the NAB business and said the Big Four bank will be introducing benefits including a single application for multiple products, loan application progress checked on line or via regular updates and faster approval times.
Thorburn said NAB staff will also “benefit from less or no data entry and straight through processing. Future decisions on how we invest in technology will be based on what our customers need, what we can afford and what is doable.”