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$1.73 billion) for the quarter ended Dec 31, down 1 per cent from the same period a year earlier.

The bank said costs rose by 5 per cent in part due to annual salary increases and higher redundancy costs, while revenue rose by 1 per cent.

The ratio of 90-days past due and total impaired assets to gross loans rose to 0.90 per cent at end-December from 0.85 per cent at end-September 2016. NAB did not give a reason for the increase. It said its net interest margin was "broadly stable".

REUTERS