NAB posts strong March-half growth

NAB posts strong March-half growth

NAB (ASX:NAB) reported a 21.7% increase in March-half cash profit to $2.7 billion, and said it saw significant market share gains during the period.

The company said its revenue grew 6.8% due to strong growth in personal banking lending, and that its market share for both home lending and household deposits improved despite a backdrop of consumer caution.

The personal banking segment also recorded growth across transaction accounts and credit cards, NAB said.

Charges for bad and doubtful debts fell 19.7% to $988 million, even when accounting for a $75 million provision for Australian natural disasters and $44 million for the New Zealand earthquakes.

But expenses grew 3.4% to $4 billion, partly due to the costs of infrastructure projects including the Next Generation Banking project. Investment in infrastructure projects grew by $127 million, or 7.3%, year-on-year.

The business banking segment meanwhile recorded a 7.9% increase in cash earnings to $1.2 billion.

“NAB has been a strong supporter of Australian businesses achieving growth while the overall lending to businesses has reduced by $12.8 billion since March 2010,” NAB Group CEO Cameron Clyne said, citing APRA Monthly Banking Statistics estimates.

Cash earnings from New Zealand banking grew 11% to NZ$383 million ($282.9 million), while cash earnings from the UK increased 26.2% to £77 million ($118.5 million).

NAB shares grew 2.61% in Thursday's trading to $27.080 on the strength of the results.

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Tags financial resultsNABconsumer spendingbankinghome loansCameron ClyneASX:NAB

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