NAB half year cash profits on target at $3.32 billion, announces $5.5 billion rights issue

Essendon Bombers Vs the Western Bulldogs. Vince Caligiuri/Getty Images

The NAB outperformed its other big bank rivals with a half year cash profit of $3.32 billion, an increase of $170 million or 5.4%.

The result was within market forecasts and was achieved on a 14.6% rise in revenue to $10.551 billion. Statutory net profit was up 20.4% to $3.440 billion.

Expenses were broadly flat.

The bank announced a steady fully franked interim dividend of 99 cents a share.

The bank also announced a $5.5 billion capital raising through a rights issue. It is also advanced in plans to demerge its UK bank, Clydesdale, via a public offering.

CEO Andrew Thorburn said competition remains intense in business lending.

However, the bank recorded volume growth in Australian home lending over the six months to March.

Overall Australian banking cash earnings were $2,574 million, an increase of 4.0%.

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