In NAB’s Q3 2015 trading update they say that undiluted cash earnings were circa $1.75bn. 9% up on the prior corresponding quarter. Statuary profit was about $1.85bn. Within these results, revenue was up 4%, but stripping out one offs relating to UK CRE and asset sales, was about 2% higher. Net interest margin declined and expenses were higher by 4%. The B&DD charge fell 15% to $193m, thanks to lower provisions in the Australian bank (or more accurately, no repeat of one-offs made last time). Over 90 days impairments were 0.78% across the group, down from 0.85%.
Common equity tier 1 (CET1) was 9.94%, a lift of 107 basis points from March 2015, mainly thanks to the rights issue.
In the Australian business, revenue rose on higher home lending and business lending, but offset by weaker Markets and Treasury income and and weaker business lending margins.
Issues remain about the costs of the UK exit. For example, a provision of £290-420m relating to payment protection liabilities, and £60-80m relating to interest rate hedging redress. They had flagged a £1.7bn estimate for the mitigation package and these more specific provisions will be an offset. However, there are still some unknowns.
