News: NAB NAB Reports FY Cash Earnings of A$7,731 Million

Nov 9 (Reuters) - National Australia Bank Ltd (NAB) :

• FY CASH EARNINGS A$7,731 MILLION VERSUS A$7,104 MILLION REPORTED LAST YEAR
• FY NET PROFIT ATTRIBUTABLE A$7,414 MILLION VERSUS A$6,891 MILLION REPORTED LAST YEAR
• AS AT SEPT 30, GROUP CET1 RATIO OF 12.22%
• FY NET INTEREST MARGIN 1.74% VERSUS 1.65% REPORTED LAST YEAR
• DECLARES FINAL 2023 DIVIDEND OF 84 AU CENTS PER SHARE
• IMPLICATIONS OF RAPID MONETARY POLICY TIGHTENING ARE BECOMING MORE EVIDENT IN OUR OPERATING ENVIRONMENT
• GROWTH IS SLOWING, COMPETITIVE AND INFLATIONARY PRESSURES ARE ELEVATED AND ASSET QUALITY IS DETERIORATING
• DURING FY, CREDIT IMPAIRMENT CHARGE A$802 MILLION, VERSUS A FY22 CHARGE OF A$125 MILLION
• EXPECT FURTHER CHALLENGES AS THE ECONOMIC TRANSITION CONTINUES BUT WE REMAIN CONFIDENT IN THE OUTLOOK
• FY RATIO OF 90+ DAYS PAST DUE AND GROSS IMPAIRED ASSETS TO GROSS LOANS AND ACCEPTANCES INCREASED BY 9 BPS TO 0.75%
• FY NET INTEREST INCOME A$16,807 MILLION VERSUS A$14,852 MILLION
• IN AUSTRALIA, WITH INFLATION NOW MODERATING, THE CASH RATE APPEARS TO BE AT OR NEAR PEAK LEVELS
• IN AUSTRALIA, IT SEEMS LIKELY THAT AUSTRALIA WILL AVOID A PRONOUNCED ECONOMIC DOWNTURN
• FY PROFORMA CAPITAL LEVELS ARE ABOVE OUR TARGET RANGE OF 11.0-11.5%
• ADJUSTING FOR REMAINING A$1.2 BILLION SHARE BUY-BACK OUTSTANDING AT SEPT2023, PROFORMA GROUP CET1 IS 11.94% VERSUS TARGET RANGE OF 11-11.5%
• IN AUSTRALIA, REAL GDP GROWTH IS FORECAST TO SLOW FROM 2.7% OVER 2022 TO BELOW TREND RATES OF LESS THAN 2% P.A. OVER 2023 AND 2024
• FOR FY24 WE ARE TARGETING INVESTMENT SPEND OF APPROXIMATELY A$1.4 BILLION AND FURTHER PRODUCTIVITY SAVINGS OF APPROXIMATELY A$400 MILLION
• IN AUSTRALIA, THE UNEMPLOYMENT RATE IS FORECAST TO DRIFT UP TO AROUND 4.5% BY END 2024 FROM A LOW OF 3.4%
• IN NEW ZEALAND, INFLATION AND LABOUR MARKET PRESSURES ARE EASING AND GROWTH IN ACTIVITY HAS SLOWED MATERIALLY
• IN NEW ZEALAND, THE CASH RATE IS LIKELY AT OR NEAR ITS PEAK FOR THIS CYCLE
• IN NEW ZEALAND, GROWTH OVER 2023 AND 2024 IS EXPECTED TO REMAIN SUBDUED, INCLUDING THE POSSIBILITY OF NEGATIVE GROWTH IN COMING QUARTERS
• IN NEW ZEALAND, REAL GDP GROWTH IS FORECAST TO BE 0.6% OVER 2023 AND 1.8% OVER 2024
• IN NEW ZEALAND, UNEMPLOYMENT RATE IS EXPECTED TO INCREASE ABOVE 5% IN 2024 FROM A LOW OF 3.2% IN 2022
• FY REVENUE FROM ORDINARY ACTIVITIES A$20,648 MLN VS A$18,570 MLN REPORTED LAST YR