-
National Australia Bank - Source: ONE News / ABC Australia
National Australia Bank, the parent company of Bank of New Zealand, has reported a net profit of $AU1.6 billion for its first quarter.
Within its earnings report, NAB said the BNZ has reduced impairment charges on bad debts and kept its interest rate margins "broadly stable" in the final three months of last year.
The lender reduced the ratio of 90-plus days past due and gross impaired loans and acceptances to 1.4% as at December 31 from 1.51% three months earlier, NAB said in a statement to the Australian stock exchange.
BNZ booked a $151 million charge on impaired loans in the year ended September 30.
"The charge for bad and doubtful debts has decreased reflecting a reduction in specific provision charges," the bank said.
The New Zealand unit's revenue was "supported by higher fee income and increased sales of risk management products for business banking customers," it said.
Net interest margin was "broadly stable" in the three month period, indicating it will be little changed from the 2.3% flagged at the end of September.
"New Zealand banking continued to deliver solid performance reflecting its ongoing focus on deposit growth and strong cost discipline in a slowly recovering economy," NAB said.
NAB reported unaudited cash earnings in the three months to December 31 of $AU1.4 billion - up from $AU1.3 billion in the same period the previous year - and net profit of $AU1.6 billion.
It's chief executive Cameron Clyne said the bank has started a strategic review for its UK banking unit to "appropriately reposition its business mix and structure for the changed economic environment and improve returns."
The bank's shares rose 1.8% to $AU24.17 in trading on the ASX yesterday.
