2000 Full Year Financial Results
| National Reports Record $3.377 Billion Profit - Up 19.8 Per Cent National Australia Bank announced today a record Group operating profit of $3,377 million (after tax and goodwill, before abnormal items) for the year to September 30, 2000. This is an increase of 19.8 per cent on the previous year. Of this profit $1,598 million, or 47.3%, was generated outside Australia. The latest result was the eighth successive year of record earnings for the Group and includes a $107 million contribution for one quarter of MLC, acquired on June 30, 2000, for $4.6 billion. This contribution comprises $54 million of margin on services profit and $53 million of revaluation gains. During the past 10 years, net profit has increased by a compound average of 16 per cent a year. Directors declared a fully franked final dividend of 64 cents a share, payable on December 13, 2000. Total dividend for the year has increased from 112 cents to 123 cents a share fully franked. The latest result was before an abnormal provision of $204 million ($136 million after tax). This reflects integration and other expenses associated with the acquisition of MLC Limited, restructuring of the Australian distribution network and restructuring in the Wholesale Financial Services division. These initiatives have been announced previously. Operating profit after tax, goodwill and abnormal items was $3,241 million. Earnings attributable to ordinary shareholders (operating profit after tax, abnormals and distributions to other equity holders) was $3,041 million for the year to September 2000. Earnings per share attributable to ordinary shareholders rose 13.2 per cent from 186.6 cents to 211.3 cents for the year. Underlying profit (before tax, charge for doubtful debts and abnormals) was up 18.9 per cent from $4,928 million in 1999 to $5,862 million for the current year. In commenting on the latest results, Managing Director Frank Cicutto said the Group had performed well as evidenced by strong growth in lending and fee-based activities, margin management, containment of expenses and maintenance of asset quality. Movements in exchange rates had a small positive impact of $17 million on the year's results. "It was pleasing that the gains the Group had made were achieved during a period of major change", he said. "To achieve both a record profit and maintain the pace of our transformation reflects the great commitment and capability of people throughout the Group." "We have successfully completed a major acquisition, continued to streamline our global operating model and increased the value we are deriving from our core businesses." "We have also maintained our traditional focus on cost and risk management." "Given the pace of our transformation and growth it is particularly pleasing to see continued improvement in our efficiency ratios." "This result continues the strong growth in returns for shareholders, which have increased by a compound average of 23 per cent a year since 1990," Mr Cicutto said. The highlights of the latest result include:
Commenting on the outlook for 2000/2001, Mr Cicutto said the Group expected to maintain its current momentum. "The creation of the Wealth Management Division enhances the growth profile of the Group which will benefit increasingly from this initiative." "We will also ensure we maximise the value we obtain from our existing core businesses." "A priority during the year ahead will be to fully leverage the strengths and potential of our Northern Hemisphere assets." "Another priority in Australia will be to consult with community groups and others on matters relating to service access and cost. We intend to increase our efforts in this regard." "The inherent strength of the current Group franchises and the opportunities to leverage off these, gives us continued confidence about our Group's prospects," Mr Cicutto said. For further information contact:
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