NAB's cash profit up 7% to $1.6 billion
Article by Rebeccah Elley
The National Australia Bank has today announced a 7% increase in third quarter cash profit to around $1.6 billion. The Commonwealth Bank also saw a significant spike in cash profits raking in $8.68 billion over the full-year, the most any bank in Australia has ever earned and ANZ made $5.2 billion in the 9 months to 30 June.
NAB CEO Andrew Thorburn said the results were "satisfactory" but revenue growth still remained challenging, pointing to a lower UK banking cash earning quarter. "Australian home lending continues to achieve market share gains and Australian business loan growth improved in what is traditionally a stronger quarter.”
“However, our UK operations still face a number of challenges. Conduct charges are difficult to predict, but we now expect that we will need to take further provisions at the Full Year result for both interest rate hedging products and Payment Protection Insurance."
Thorburn said the big bank's core Australian and New Zealand franchises have real opportunities ahead, "including achieving sustainable growth in business banking, while continuing to deliver strong home loan growth and providing a better experience for customers."
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“Like all large businesses there are things we can do better at NAB and we will have more to say on this at our Full Year result on 30 October,” Thorburn said.