- Release Date: 18/08/14 13:04
- Summary: QUARTER: BNZ: NAB 2014 Third Quarter Trading Update
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BNZ 18/08/2014 13:04 QUARTER REL: 1304 HRS Bank of New Zealand QUARTER: BNZ: NAB 2014 Third Quarter Trading Update NAB 2014 Third Quarter Trading Update Satisfactory performance despite challenging environment Unaudited cash earnings rose to approximately $1.6 billion, which is 7% up on the prior corresponding period and around 2% above the quarterly average of the March 2014 Half Year result. Business Commentary Australian Banking cash earnings were broadly flat over the quarter with lower markets income offsetting continued good growth in mortgage lending and further falls in B&DD charges. Over the quarter home loan balances grew at an annualised rate of 8.5%. Growth in housing lending during the period represented 1.1x system. Business lending balances grew at an annualised rate of 5.5% over the quarter with the growth strongest in Institutional lending. On an APRA basis, growth in business lending during the period represented 0.8x system. NAB Wealth cash earnings increased over the quarter benefiting from improved insurance claims results while lapses remained stable and the impact of higher FUM was offset by a mix change to lower margin wholesale investment business in the period. NZ Banking local currency cash earnings rose over the quarter due to higher revenue from increased loan volumes and lower funding costs. Expenses were well managed while B&DD charges were stable. UK Banking local currency cash earnings were lower in the quarter. Continued strong growth in the mortgage book and a lower charge for B&DDs was offset by a lower net interest margin largely reflecting timing of the Financial Services Compensation Scheme(FSCS) levy. NAB UK CRE run-off portfolio reported a modest loss in the third quarter, which included a 6 million B&DD charge and no change to the NAB UK CRE overlay balance. The portfolio continues to decline with the balance reducing over the quarter from 3.3 billion to 3.0 billion. As announced on 28 July, NAB has agreed to sell a 625 million portfolio of mainly impaired loans for a small gain above the net book value, with these loans derecognised from NAB Group's balance sheet on that date. Great Western Bank local currency cash earnings were lower over the quarter primarily due to revaluation of foreclosed properties and lower releases of provisions for B&DDs. The business remains fully deposit funded and asset quality indicators have improved. End CA:00253996 For:BNZ Type:QUARTER Time:2014-08-18 13:04:11
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