National Australia Bank’s profit has held steady despite a drop in revenue and expenses, according to its annual statement to the ASX.
The major reported a $1.7 billion net profit for the third quarter, which was the same result as the year before.
Cash earnings rose seven per cent to $1.6 billion, while revenue fell one per cent “due mainly to lower markets' income as subdued volatility reduced trading opportunities”.
Headline expenses fell six per cent, although they were actually flat after excluding the impact of UK customer conduct costs in the March 2014 half year, NAB said.
“The charge for bad and doubtful debts for the quarter was $241 million, down nine per cent due primarily to lower charges in Australian banking and UK banking,” according to NAB.
“For the financial year to date, the group has raised approximately $23 billion of term wholesale funding. The weighted average term to maturity of the funds raised by the group for the financial year to date was 5.1 years.”
Home loan balances grew at an annualised rate of 8.5 per cent, while housing lending grew at 1.1 times system.
Business lending balances grew at an annualised rate of 5.5 per cent over the quarter, which was 0.8 times system.
Chief executive Andrew Thorburn said NAB had achieved a “satisfactory” third-quarter result.
“While revenue growth remains challenging, Australian home lending continues to achieve market share gains and Australian business loan growth improved in what is traditionally a stronger quarter,” he said.
“In our core Australian and New Zealand franchises, we have real opportunities ahead, including achieving sustainable growth in business banking while continuing to deliver strong home loan growth and providing a better experience for customers.”