SYDNEY – Australia’s NAB reported today that its full-year after-tax profits have fallen by almost half, as the coronavirus pandemic continues to impact lenders Down Under.
The bank, one of Australia's “Big Four” lenders, said after-tax earnings shrunk 46.7% to A$2.55 billion (RM7.6 billion) in the year to September, amid “the ongoing challenges and uncertainties associated with Covid-19”.
NAB said it approved the deferral of almost 150,000 home and business loans during the virus crisis.
It told investors that it added a further A$1 billion to A$1.8 billion of forward-looking provisions to deal with the expected economic fallout.
The bank also declared A$2.7 billion in credit impairment charges, an increase of 200% on the previous financial year.
Revenue fell slightly, while expenditure rose almost 11% as the bank rolled out new, higher-cost technologies across its operations.
Shareholders will receive a final dividend of 30 cents per share, down from the 83 cents in the second half of 2019.
NAB shares rose more than 1% to A$18.91 at the start of trade.
Australia’s other three big banks – CBA, Westpac and ANZ – have already reported steep declines in full-year earnings of between 11% and 66%. – AFP, November 5, 2020
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