As at end-June, NAB’s tier 1 capital ratio was 9.94%, an increase of 107 basis points from March 2015, reflecting the proceeds from its recently completed .5bn rights issue.
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Net profit for the June quarter was $1.85 billion, up from $1.7 billion a year ago.
The bank may need to provide as much as 500 million pounds ($775 million) for compensation for mis-selling payment protection insurance and hedging products to United Kingdom customers, it said.
NAB’s third quarter profits rose 9 per cent compared with a year earlier.
Meanwhile, the group’s net interest margin fell due to weaker markets and treasury income, and competition for business lending, it stated.
The result was driven by lower bad and doubtful debt charges and higher revenue from its Australian operations, and better earnings from its New Zealand and wealth management divisions.
As part of its capital raising announcement, ANZ revealed its had lifted its cash profit by 4.3 per cent to $5.18bn in the nine months to June to, based on unaudited results.
It says these costs are already covered by ₤1.7 billion bank capital that NAB is planning to put aside to cover for future misconduct charges against its UK business, Clydesdale and Yorkshire.
NAB is looking to pare back its wider global presence and focus more exclusively on its Australian and New Zealand operations.
“This is a good quarterly result with continuing momentum in our Australian and New Zealand business, improvements in asset quality and further progress made towards addressing legacyissues”, NAB Group CEO Andrew Thorburn said. “We have continued to invest in a disciplined way in our priority customer segments of home lending, SME [small and medium enterprises] and Specialised Business, to deliver a better experience for customers and improve returns to shareholders”, he said.
In May, National Australia Bank announced plans to float Clydesdale on the stock exchange as an independent business.
The bank said its expenses were up around 4 per cent.
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“Substantial progress” has been made over the past three months on plans to demerge and float Clydesdale and Yorkshire Bank, parent company National Australia Bank (NAB) said this morning (10 August 2015).
