The strength in earnings of our major banks continues with the NAB this morning reporting an increase in statutory profit of $390 million (15.8%) to $2.86 billion for the first half of its financial year ended in March.
Cash earnings were also strong, up 8.5% or $247 million to $3.15 billion.
Key to the improvement in cash earnings was the huge 52% reduction in bad and doubtful debts over the corresponding period last year. The NAB took charge for just $528 million on the back of “lower loan losses in Australian banking and the UK businesses”.
The NAB announced a 99 cent interim dividend which will be fully franked. This is a 6 cent increase over the prior interim dividend.
We’ll see how the market takes the release when trading begins this morning but Ric Spooner had a look at the technical outlook in this morning’s Stock to Watch – you can find at the bottom of our 20-Second Guide To What Aussie Traders Will Be Talking About here.
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