National Australia Bank’s first-half cash earnings up 1% on lending volume growth

NATIONAL Australia Bank, the country’s biggest business lender, said on Wednesday its first-half cash earnings rose 1 per cent, helped by growth in lending volumes and lower impairment charges.

The lender posted cash earnings of A$3.58 billion (S$3 billion) for the six months ended March 31, compared with A$3.55 billion a year ago and the Visible Alpha consensus estimate of A$3.48 billion.

Disciplined cost management, robust business lending and growth in customer deposits aided the company’s operational performance in the first half.

NAB, also Australia’s third-largest mortgage lender, said its net interest margin — a closely watched measure of profitability — was at 1.70 per cent for the period, compared with 1.72 per cent a year earlier and the Visible Alpha consensus estimate of 1.69 per cent.

Housing lending volumes increased 3.2 per cent, while its business and private banking arm logged 5.9 pre cent growth in lending.

NAB declared an interim dividend of 85 Australian cents per share, marginally up from 84 Australian cents apiece a year earlier. REUTERS