NAB sees profits plunge almost 50%

[SYDNEY] Australia's NAB reported on Thursday that its full-year after-tax profits had fallen by almost half, as the coronavirus pandemic continued to impact lenders Down Under.

The bank, one of Australia's "Big Four" lenders, said after-tax earnings shrunk 46.7 per cent to A$2.55 billion (S$2.48 billion) in the year to September, amid "the ongoing challenges and uncertainties associated with Covid-19".

NAB said it had approved the deferral of almost 150,000 home and business loans during the coronavirus crisis.

It told investors it had added a further A$1 billion to A$1.8 billion of forward-looking provisions to deal with the expected economic fallout.

The bank also declared A$2.7 billion in credit impairment charges, an increase of 200 per cent on the previous financial year.

Revenue fell slightly while expenditure rose almost 11 per cent as the bank rolled out new, higher-cost technologies across its operations.

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Shareholders will receive a final dividend of 30 cents per share, down from 83 cents in the second half of 2019.

NAB shares rose more than one per cent to A$18.91 at the start of trade.

Australia's other three big banks - CBA, Westpac and ANZ - have already reported steep declines in full-year earnings of between 11 and 66 per cent.

AFP