Advertisement

NAB reports massive profit slump due to pandemic

NAB says it has targeted growth in high-returning areas.

NAB says it has targeted growth in high-returning areas. Photo: ABC

National Australia Bank has reported a 46.7 per cent slump in full-year earnings due to the impact of the coronavirus pandemic on the economy.

But NAB is cautiously optimistic about the future, saying federal government stimulus measures for households and business should “provide a bridge to economic recovery”.

NAB’s bottom line net profit fell to $2.6 billion for the year ended September, compared with $4.8 billion in the previous corresponding period.

Cash earnings – the bank’s usually preferred measure because it includes ongoing operations – declined by 36.6 per cent to $3.7 billion.

Credit impairment charges, which indicate the health of a bank’s lending book, rose by 201 per cent to $2.8 billion.

“Asset quality is starting to deteriorate given economic disruption caused by COVID-19,” NAB said on Thursday.

“While the outlook remains uncertain, further deterioration is expected.”

NAB declared a final dividend of 30 cents per share, taking the total payout for the year to 60 cents per share.

-AAP

Stay informed, daily
A FREE subscription to The New Daily arrives every morning and evening.
The New Daily is a trusted source of national news and information and is provided free for all Australians. Read our editorial charter
Copyright © 2024 The New Daily.
All rights reserved.