National Australia Bank reported cash earnings of AU$7.10 billion for its financial year to 30 September 2024, a decline of 8.1% on the prior year. NAB, one of Australia's four major banks, published the results on 7 November 2024.
Group revenue for the year fell 2.0% to AU$20.25 billion, while net interest margin — the key measure of the difference between what NAB earns on loans and pays on deposits — compressed to 1.71%.
COSTS RISE AS MARGIN NARROWS
Operating expenses rose 4.5%, with NAB citing productivity benefits of AU$453 million that limited cost growth, while CEO Andrew Irvine set out an evolved strategy focused on simplification and said investment spend would rise to about AU$1.8 billion in FY25.
Net interest margin fell 3 basis points to 1.71%, which NAB attributed mainly to home lending competition, higher term deposit costs and deposit mix.
Cash earnings, a non-statutory measure NAB says better reflects its underlying performance, fell 8.1%, while statutory net profit fell 6.1% to AU$6.96 billion. NAB said a more stable operating environment in the second half had seen revenue and margin pressures moderate, with cash earnings stable in 2H24 compared with 1H24.
DIVIDEND RAISED AND CAPITAL POSITION MAINTAINED
NAB declared a fully franked final dividend of AU$0.85 per share, up from 84 cents a year earlier, taking total FY24 dividends to AU$1.69.
The Group CET1 ratio rose 13 basis points to 12.35%, although NAB said asset quality deteriorated over the year. The credit impairment charge fell to AU$728 million from AU$802 million even as non-performing exposures rose 26 basis points to 1.39% of gross loans and acceptances.