The headline cash earnings figure is flat compared to cash earnings for Pre Covid qtr 31/12/19 however cash earnings before tax and credit impairment was 6% down.
The credit Impairment for the quarter was only $15m which is extremely low and appears to confirm that large impairments booked over the past 3 quarters have been sufficient and conservative (although still plenty to play out) (Interestingly the Credit Impairment figure for qtr 31/12/19 was $185m which was also quite a low figure)
It is worth noting that they have reported the figure for January of 90 days past due & Gross Impaired assets which spiked for the month to 1.18%. This has been attributed to missed repayments after customers coming out of deferral in October although it appears they do not expect this to be a long term situation.
Obviously something to keep an eye on but they appear confident that provisions booked to date are sufficient.
Overall, with reduced costs and improving business conditions I think these figures are pretty good although there is still some concern about ongoing conditions and long term effects after assistance measures cease.
NAB Price at posting:
$25.29 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)