NAB Lifts Cash Profit 7% To $1.6 Billion But Revenue Is Down

Andrew Thorburn. Image: NAB.

The NAB has posted a 7% rise in cash profits to $1.6 billion.

In its 2014 third quarter trading update, the bank calls the result “satisfactory” despite a “challenging environment”.

On a statutory basis, net profit for the June quarter was approximately $1.7 billion.

The main difference between statutory and cash earnings relates to distributions and the elimination of treasury shares.

On a cash earnings basis, revenue decreased by about 1% due mainly to lower markets income as subdued volatility reduced trading opportunities.

This was partially offset by higher lending balances and a broadly stable customer margin.

Expenses fell 6%, but were flat after excluding the impact of UK customer conduct costs in the March 2014 Half Year.

“The Group achieved a satisfactory third quarter result,” says CEO Andrew Thorburn.

“Costs were well contained and asset quality continues to improve.

“While revenue growth remains challenging, Australian home lending continues to achieve market share gains and Australian business loan growth improved in what is traditionally a stronger quarter.”

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