National Australia Bank reported Q1 unaudited cash earnings of $1.7 billion, 8% higher than the prior corresponding period. Statutory net profit was $1.5 billion.
Revenue increased 2%, thanks to stronger lending volumes, a higher NIM and stronger Wealth. Expenses rose 5%. They specifically mentioned the benefit to NIM of home loan repricing. which was partly offset by higher funding costs and competition for business lending.
The charge for Bad and Doubtful debt fell 52% to $84 million. This is explained by the non-repeat of provisions for mining and agribusiness previously made, and improved asset quality in the Australian bank.
Common Equity Tier 1 capital (CET1) was 10.1%, slightly down on the 10.2% at September 2015, thanks to the impact of dividends.
Group leverage ratio was 5.4%.
