National Australia Bank first quarter earnings fall 1% as costs rise

Sydney

NATIONAL Australia Bank (NAB), the No 4 lender by market value, on Monday reported a 1 per cent fall in first quarter unaudited cash profit as costs grew faster than revenue. NAB posted unaudited cash earnings of A$1.6 billion (S$1.72 billion) in line with market expectations for the quarter ended Dec 31, with its net interest margin remaining "broadly stable".

Australian bank returns have been under pressure from higher wholesale funding and deposit costs, as well as regulatory changes requiring them to hold more capital against their mortgage books to provide a more level playing field for smaller banks.