NAB share price drops after first-half cash profit rises 7%
National Australia Bank (NAB) posted a 75% rise in its first-half cash profit to A$2.95 billion on Thursday.
NAB Share price
National Australia Bank Ltd share price dropped up to 1.2% to $25.60 at time of writing. Straight after the new it dropped to a low of $25.45.
NAB H1 Key figures
NAB cut its interim dividend to 83 Australian cents per share. NAB had long maintained a dividend of 99 Australian cents per share for every six months since 2014.
The cut reduces the company’s relatively high payout ratio.
Cash earnings came in at A$2.95 billion ($2.07 billion) for the six months ending March 31, compared with A$2.76 billion a year earlier, meeting analysts’ expectations.
NAB’s net interest margin - a key measure of bank profitability - fell 7 basis points to 1.79%.
Revenues were up 1.4 % with growth in housing and business lending partially offset by lower margins.
Costs rose 1.7 %
Banking royal commission
In the wake of the royal banking commission, analysts predicted weaker results from the big four Australian banks.
The big four banks have paid back an estimated $4.1 billion so far, with some analysts speculating an even higher number of around $5 billion in pay backs.
It comes after a difficult year for Australia’s big four banks including the ANZ, Westpac and the Commonwealth bank.
‘This has been a challenging period for NAB with the Royal Commission highlighting the need for us to take greater action to earn back the trust of our customers,’ says Philip Chronican, NAB's interim CEO and chairman-elect
Impairment charges rose by more than 20% to $449 million. Nab was also hit by a post-tax $525 million cost for customer remediation, after the banking royal commission.
NAB said it would announced additional costs soon.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Act on stock opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
