National Australia Bank Ltd (ASX:NAB) has recorded a 63 per cent jump in its full year profit, earnings rising from $2.6 billion last year to $4.22 billion, with chief executive Cameron Clyne predicting that the economy is likely to strengthen in 2011.
In the year to 30 September NAB's cash profit, which forms the basis for determining dividends, increased 19.3 per cent from $3.84 billion to $4.58 billion.
The bank has added 6 per cent to its dividend, declaring a fully franked final dividend of 78 cents per share, which brings the total dividend for the year to $1.52 per share. Revenue in the year fell by 1.6 per cent to $16.6 billion.
Mr Clyne says he was very pleased NAB's progress over fiscal 2010 and the risks associated with fragile economic conditions and market volatility where well managed.
However Mr Clyne has joined Commonwealth Bank of Australia's (ASX:CBA) CEO Ralph Norris in warning that banks are being impacted by higher funding cost pressures, a condition likely to affect a rate rise outside of the RBA's official decision next week.
In the six months to 31 March, National Australia Bank recorded a $2.09 billion profit.
NAB Price at posting:
$25.55 Sentiment: None Disclosure: Held
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