NAB September 2007 profit highlights

NAB September 2007 profit highlights

• National Australia Bank reported a cash net profit of $4.39 billion for the year to September 2007, up 13 per cent on 2006. This was based on revenue of $14.6 billion, which was up eight per cent.

• Cash earnings per share rose 16 per cent though the dividend per share increased only nine per cent.

• Return on equity increased to 17.1 per cent in 2007 from 15.9 per cent in 2006 and remains the lowest in its peer group.

• The expense to income ratio for NAB's banking businesses fell to 50.8 per cent from 54.5 per cent.

• The net interest margin was stable in Australia at 2.40 per cent, fell eleven basis points to 2.40 per cent in New Zealand and dropped 45 basis points in Britain to 2.96 per cent, reflecting a changed business mix.

• For the Australian region (banking and wealth management) cash earnings increased 23 per cent to $2.87 billion over 12 months and by 12 per cent to $1.52 billion over six months.

• nabCapital increased cash earnings by 17 per cent to $715 million.

• New Zealand increased cash earnings by 18 per cent to NZ$430 million.

• Europe increased earnings by 14 per cent to £243 million.

• Gross impaired assets increased 42 per cent over the year to $1.1 billion and increased by 21 per cent over six months. Provisions for doubtful debts increased only four per cent over the year to $2.1 billion while the charge to the profit and loss increased 30 per cent to $790 million.