National Australia Bank (NAB) has reported cash earnings of A$1.6bn for the third quarter ended 30 June 2016, down 3% compared to a year ago and also down 3% from the quarterly average of the March 2016 half year figure.
On a statutory basis, the bank's net profit attributable to the owners was A$1.6bn.
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The bank said that its revenue was broadly stable compared with the quarterly average of the March 2016 half year, as lending growth was offset by lower net interest margin.
The charge for bad and doubtful debts during the period surged 21% to A$228m compared with the quarterly average of the March 2016 half year. The bank attributed the rise to non-recurrence of low bad and doubtful debt charge in the first quarter of 2016 as well as a rise in the mining and agriculture collective provision overlay.
The group’s common equity tier 1 (CET1) ratio at 30 June 2016 stood at 9.5%, compared with 9.7% at 31 March 2016. The decline primarily reflected the impact of the interim 2016 dividend declaration, NAB said in its trading update.
NAB Group CEO Andrew Thorburn said: "We continue to deliver on our strategy – getting the basics right, serving our customers better and keeping the balance sheet strong.
“The Australian and New Zealand economies remain resilient and continue to deliver growth amid heightened global uncertainty. While we saw higher funding costs during the quarter, asset quality remains strong and cost control was pleasing.”
