News: NAB NAB Posts HY Net Profit Attributable A$3,967 Million

May 4 (Reuters) - National Australia Bank Ltd (NAB) :

• HY NET PROFIT ATTRIBUTABLE A$ 3,967 MILLION VERSUS A$3,551 MILLION REPORTED LAST YEAR
• DECLARES INTERIM DIVIDEND OF 83 AU CENTS PER SHARE
• HY REVENUE FROM ORDINARY ACTIVITIES A$10,568 MILLION VERSUS A$9,071 MILLION REPORTED LAST YEAR
• HY NET INTEREST MARGIN 1.77% VERSUS 1.63%
• HY CASH EARNINGS A$4,070 MILLION VERSUS A$3,480 MILLION REPORTED LAST YEAR
• EXPECT FURTHER CHALLENGES TO EMERGE AS ECONOMIC TRANSITION CONTINUES BUT REMAIN CONFIDENT IN THE OUTLOOK
• AS AT MARCH-END, CET1 RATIO OF 12.21%
• WHILE GROWTH IS SLOWING, THE AUSTRALIAN ECONOMY APPEARS RESILIENT
• HY NET INTEREST INCOME A$8,476 MILLION VERSUS A$7,085 MILLION
• HAVE ATTRACTIVE OPTIONS FOR GROWTH ACROSS OUR BUSINESS WITH STRONG BALANCE SHEET SETTINGS
• DURING HY, CREDIT IMPAIRMENT CHARGE (CIC) WAS A$393 MILLION, VERSUS A 1H22 CHARGE OF A$2 MILLION
• LIQUIDITY IS STRONG, COLLECTIVE PROVISION COVERAGE REMAINS WELL ABOVE PRE COVID-19 LEVELS
• EXPOSURE TO COMMERCIAL REAL ESTATE AS A PERCENTAGE OF TOTAL LENDING HAS BEEN ON A DOWNWARD PATH SINCE SEPTEMBER 2009, NOW LESS THAN 10%
• 1H23 CHARGE INCLUDES A A$68 MILLION RELEASE FROM FORWARD LOOKING PROVISIONS
• 1H23 RATIO OF 90+ DAYS PAST DUE AND GROSS IMPAIRED ASSETS TO GROSS LOANS AND ACCEPTANCES REDUCED 9 BPS TO 0.66%
• FY23 TERM FUNDING TASK IS WELL ADVANCED WITH A$23 BILLION RAISED IN 1H23
• ACCELERATING EFFORTS TO PROTECT CUSTOMERS AGAINST RAPID RISE IN FRAUDS AND SCAMS
• IN FY23 WE EXPECT TO DELIVER PRODUCTIVITY BENEFITS OF APPROXIMATELY A$400 MILLION
• EARLY SIGNS THAT INFLATION IS MODERATING ARE ENCOURAGING AND WE REMAIN OPTIMISTIC ABOUT OUTLOOK - OUR BANK
• COLLECTIVE PROVISIONS ARE PRUDENTLY SET AT 1.42% OF CREDIT RISK WEIGHTED ASSETS
• WELL PLACED TO CONTINUE MANAGING OUR BUSINESS FOR THE LONG TERM
• ENCOURAGING SIGNS THAT INFLATION IN AUSTRALIA IS BEGINNING TO MODERATE
• FULL IMPACT OF HIGHER COST OF LIVING AND HIGHER INTEREST RATES ON THE OUTLOOK REMAINS UNCERTAIN
• NOW SEEMS INCREASINGLY LIKELY THAT AUSTRALIA WILL AVOID A PRONOUNCED ECONOMIC CORRECTION
• FORECAST AUSTRALIA REAL GDP GROWTH EXPECTED TO SLOW FROM 2.7% OVER 2022 TO AROUND 1% OVER EACH OF NEXT TWO YEARS
• IN AUSTRALIA, UNEMPLOYMENT RATE FORECAST TO DRIFT UP TO AROUND 4.7% BY END 2024 AFTER TROUGHING AT 3.5%
• IN NEW ZEALAND, A FURTHER CORRECTION IN ACTIVITY IN 2023 IS EXPECTED
• IN NEW ZEALAND, SIGNS OF EASING INFLATIONARY AND LABOUR MARKET PRESSURES ARE EMERGING