NAB gains 'Advantedge' as profits soar
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19/02/2010 9:00:00 AM
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Following on the heels of CBA and Westpac, NAB has released strong quarterly earnings figures recording a $1.1bn in unaudited cash earnings, an increase of 20% on the previous quarter.
The result included a contribution of $33m from recent acquisitions, including the purchase of Challenger mortgage management business, now rebranded Advantedge
This added approximately $4.5bn of mortgages to the NAB book. "Excluding this, the mortgage book grew at approximately 0.9 times system," the bank said.
NAB said the earnings improvement reflected "a decline in the charge for bad and doubtful debts and sound business performance".
The bank said total group revenue and net interest margin were broadly stable compared to the second half of 2009, with the "benefit of repricing activity undertaken in 2009 offset by higher wholesale funding costs and heightened competition for deposits"
For the financial year to date approximately $11bn of term wholesale funding has been raised compared to a 2010 full year target of $20 to $25bn - without the need to access the government guarantee.
Related stories:
Advantedge to put mortgage managers "back in the fray" - One of Advantedge's key priorities for the year will be getting mortgage managers "back into the fray and competing with the major banks", according to its CEO, Drew Hall
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