National Australia Bank (NAB) has reported cash earnings of AUD1.7bn for the third quarter of 2017, a rise of 5% compared to the year ago period and up 2% from the quarterly average of the March 2017 half year figure.
On a statutory basis, the banking group’s net profit for the period ended 30 June 2017 was AUD1.6bn.
The group’s revenue rose 2% from the quarterly average of the March 2017 half year, driven by growth in lending and improved group net interest margin.
The charge for bad and doubtful debts during the period dipped 12% to AUD173m from the quarterly average of the March 2017 half year. The group attributed the fall to improved asset quality trends and non-repeat of the collective provision overlay for commercial real estate.
The group’s common equity tier 1 (CET1) ratio at the end of June 2017 stood at 9.7%, compared to 10.1% as at 31 March 2017. The fall reflected the impact of the interim 2017 dividend declaration, NAB said in its trading update.
NAB Group CEO Andrew Thorburn said: “This is a strong result which reflects continued discipline and focus. Cash earnings and revenue are both higher, asset quality has improved and our capital and funding positions remain sound.”