August 13, 2019 / 10:55 PM / 3 months ago

National Australia Bank posts flat quarterly profit, flags more provisions

FILE PHOTO: The logo of National Australia Bank is displayed outside the firm's headquarters in central Sydney, Australia, August 4, 2017. REUTERS/David Gray/File Photo

(Reuters) - National Australia Bank (NAB.AX), the country’s No.3 lender by market value, on Wednesday reported flat growth in third-quarter cash profit and flagged more expenses related to customer remediation in the second half of fiscal 2019.

Australia’s biggest banks have already paid about A$8 billion ($5.44 billion) in regulatory and remediation costs related to an inquiry into the nation’s financial sector, which has put more pressure on their margins.

As of April, NAB had put aside close to A$1.1 billion to pay aggrieved customers. The bank, which said it expected additional provisions in the second half, did not provide an exact figure in its limited trading update on Wednesday.

It said revenue grew marginally and net interest margin increased compared with the first-half’s quarterly average due to lower funding costs.

The lender reported cash earnings of A$1.65 billion ($1.12 billion) for the three months ended June 30, same as last year. It excluded one-offs and non-cash accounting items.

NAB’s common equity tier-1 ratio rose to 10.4% as of June 30 from 10% on March 31.

Reporting by Rushil Dutta and Aby Jose Koilparambil in Bengaluru; Editing by Arun Koyyur

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