National Australia Bank boosts dividend as profit meets expectations

NATIONAL Australia Bank met expectations for first-half cash profit on Thursday and hiked its dividend by more than a fifth as robust growth in loan volumes and higher fee income helped the lender offset the impact of shrinking margins. Australia’s “Big Four” banks enjoyed a boom in home lending amid record low rates and a pandemic-fuelled shift to remote working that buoyed the property markets. But their margins have come under pressure from stiff competition and borrowers moving to fixed-rate loans. NAB – the country’s No. 2 bank by market value and largest business lender – said net interest margin declined by 11 basis points to 1.63 per cent in the six months to March. It reported cash earnings of A$3.48 billion (S$3.48 billion), compared with A$3.34 billion a year earlier and Refinitiv IBES estimates of A$3.48 billion. The bank declared an interim dividend of 73 Australian cents per share, up from 60 cents a year earlier. Smaller rival Australia and New Zealand Banking Group on Wednesday beat profit estimates and forecast improved margins in the second half on the prospect of more interest rate hikes. REUTERS