Message from Managing Director National Posts Further Strong Gains National Australia Bank today reported a Group operating profit after tax of $582 million for the first quarter to 31 December 1996. The result represents an increase of 13.5 per cent over the $513 million earned in the previous December quarter. Underlying profit (profit before tax and doubtful debts) of $960 million showed strong growth of 14.3 per cent against the December 1995 quarter. Key features of the first quarter result compared to the corresponding quarter were:
- Non interest income was 19.2 per cent higher at $813 million
- Group assets up 11.6 per cent to $184.0 billion
- Charge against profit for doubtful debts down 32.8 per cent to $39 million
- Group deposits up 11.2 per cent to $119.4 billion
- Cost to income ratio (excluding goodwill) improved from 54.9 per cent to 53.3 per cent
- Earnings per share up 9.7 per cent to 39.4 cents from 35.9 cents
- Income tax expense up 26.5 per cent to $339 million
The National's Managing Director, Mr D.R. (Don) Argus, said the Group continued to perform well in the first quarter. "Earnings growth was achieved by a combination of cost containment, strong credit management and successful marketing of financial products to key segments of the market both in Australia and overseas. "The Group benefited from continued strength in the performance of its banking operations in New Zealand, the United States, the United Kingdom and the Republic of Ireland. "Our progress is highlighted by the 14.3% increase in the Group's underlying profit. This is a key measure of our ability to win customers and run our business efficiently. "It was also pleasing to note a further improvement in our cost to income ratio to an historic low of 53.3 per cent," Mr Argus said. Mr Argus said the Group's strong focus on the fundamentals of its business and international spread of banking and financial services operations augured well for the future. "Competitive pressure on interest margins remains in all markets. However, our continued emphasis on sound management practices, cost control and aggressive marketing will remain priorities," Mr. Argus said. 23 January, 1997
For information contact: Haydn Park
Group Manager
Media & Public Relations
(03) 9641 3857 (Bus)
(03) 0412 318 489 (Mobile) | 
