News: NAB NAB Reports FY Cash Earnings A$7,104 Million

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

• FY CASH EARNINGS A$7,104 MILLION VERSUS A$6,558 MILLION REPORTED LAST YEAR
• DECLARES FINAL DIVIDEND 78 AU CENTS PER SHARE
• AS AT SEPT 30, GROUP CET1 RATIO OF 11.51%
• FY RATIO OF 90+ DAYS PAST DUE AND GROSS IMPAIRED ASSETS TO GROSS LOANS AND ACCEPTANCES REDUCED 28 BPS TO 0.66%
• FY CREDIT IMPAIRMENT CHARGE A$125 MILLION VERSUS WRITE-BACK OF A$217 MILLION
• FY NET PROFIT ATTRIBUTABLE A$6,891 MILLION VERSUS A$6,364 MILLION REPORTED LAST YEAR
• CAPITAL LEVELS REMAIN ABOVE OUR TARGETS AFTER COMPLETING A$3.9 BILLION OF ON- MARKET SHARE BUY-BACKS OVER FY22
• FY NET INTEREST MARGIN 1.65% VERSUS 1.71%
• HIGHER INTEREST RATES AND HIGHER INFLATION LIKELY TO CHALLENGE SOME CUSTOMERS
• FY REVENUE FROM ORDINARY ACTIVITIES A$18,570 MILLION VERSUS A$16,729 MILLION REPORTED LAST YEAR
• FY NET INTEREST INCOME A$14,852 MILLION VERSUS A$13,797 MILLION
• STRONG EMPLOYMENT CONDITIONS, SUBSTANTIAL HOUSEHOLD & BUSINESS SAVINGS GIVE US CONFIDENCE IN THE RESILIENCE OF OUR CUSTOMERS & BROADER ECONOMY
• WE ENTER FY23 WELL POSITIONED FOR WHAT IS LIKELY TO BE A MORE CHALLENGING ENVIRONMENT
• IN AUSTRALIA, CONSUMPTION AND OVERALL GROWTH ARE EXPECTED TO SOFTEN FROM SEPTEMBER 2022
• MOST LIKELY SCENARIO HAS FORECAST INFLATION PEAKING IN THE DECEMBER 2022 QUARTER BEFORE EASING THROUGH 2023
• WELL POSITIONED FOR CHANGING AUSTRALIAN HOME LENDING MARKET WITH HEIGHTENED REFINANCING ACTIVITY AND COMPETITIVE PRESSURES EXPECTED
• FROM 1 JAN 2023 OUR CET1 TARGET RANGE WILL MOVE TO 11.00%-11.50% TO ALIGN WITH NEW CALCULATION METHODOLOGY
• CASH RATE LIKELY PEAK AT 3.6% IN MARCH 2023
• NAB SEES CORRECTION IN NEW ZEALAND ECONOMIC ACTIVITY IN 2023, INCLUDING SOME QUARTERS OF MODESTLY NEGATIVE GDP GROWTH
• IN FY23 EXPECT TO INCREASE INVESTMENT SPEND BY A$100 MILLION TO HELP PREVENT THE GROWING THREAT OF FINANCIAL CRIME, FRAUD AND SCAMS
• LOOKING TO FY23, WE ARE TARGETING FURTHER PRODUCTIVITY SAVINGS OF APPROXIMATELY A$400 MILLION
• THE BOARD HAS DETERMINED DIVIDENDS FOR THE YEAR OF 151 AU CENTS PER SHARE