NAB Earnings Jump
NAB Earnings Jump – NAB has increased cash earnings by 20 per cent in the first quarter of fiscal 2010, from the final quarter of the previous year, after bad and doubtful debt charges fell.
The bank’s cash earnings for the three months ended December 31 totalled $1.1 billion and included a contribution of $33 million from recent acquisitions.
“The earnings improvement reflected a decline in the charge for bad and doubtful debts and sound business performance,” NAB said this morning.
The charge for bad and doubtful debts (B&DD) in the December quarter was $739 million, which was $202 million lower from the end of the September quarter.
NAB said the ratio of loans 90-plus days past due and gross impaired assets to gross loans and acceptances had been broadly flat since June and was 1.84 per cent at the end of December 2009, compared to 1.75 per cent at the end of September.
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Chief executive Cameron Clyne said NAB delivered a sound first quarter result, despite subdued credit growth, greater competitive pressures and rising average funding costs.
“Bad and doubtful debt charges have fallen and are not expected to return to the peak experienced in the third quarter of the 2009 financial year,” he said.
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