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A major has released its half year results, shedding light on the bank’s progression through what the CEO has termed “a challenging period.”
NAB recorded a $2.7m statuary net profit but, excluding customer remediation costs, first half cash earnings were relatively flat in relation to the year before.
Compared to September 2018, housing lending increased by $6.8bn (2%), which the bank says is due to growth in the broker channel and strong results in New Zealand.
Non-housing lending increased $9bn (3.6%), strengthened by a 2.3% rise in business and private banking; a 4.5% hike in corporate and institutional banking; and a 6.4% increase in New Zealand operations.
Meanwhile , the bank has loaned more than $3bn each month to SMEs since March 2018 and gross loans and advances increased $15.7bn (2.7%) compared to September, due to the growth in housing and business lending.
The Net Promoter Score for the bank has gone down one point to -17 as compared to September 2018 levels, putting NAB second of the major banks.
“This has been a challenging period for NAB with the royal commission highlighting the need for us to take greater action to earn back the trust of our customers and the community,” said NAB CEO Philip Chronican.
Non-major bank, AMP, has also released its first quarter cashflow update.
AMP’s total loan book increased by $127m to $20.1bn, a result the bank has attributed to continued growth from the mortgage broker channel.
The deposit book increased by $218m from the end of 2018, now resting at $13.5bn.
AMP chief executive Francesco De Ferrari said, “Our focus during the first quarter has been on accelerating change within AMP including establishing a new leadership team, progressing the remediation program and separating our life insurance businesses, and sharpening our offers to clients.”
AMP also announced that as of 1 June 2019, current CFO and COO of AMP Capital John Patrick (JP) Moorhead will transition into the role of Group CFO following the departure of Gordon Lefevre.
De Ferrari added, “As we change and reinvent AMP, [Moorhead] will bring the valuable international experience of leading finance in a complex and entrepreneurial business at Virgin Group, as well as strong industry experience from his time with Goldman Sachs and Fidelity International.”
