National Australia Bank (NAB) is a financial services group providing a comprehensive, integrated range of financial products and services. NAB is the largest financial services institution listed on the ASX by market capitalisation, with approximately 7.8 million banking customers and 2.8 million wealth management customers and total assets of $397 billion as at 30 September 2003.

NAB posted a modest 5% increase in NPAT for ordinary shareholders to $3.772bn for the year to September 30, 2003. Cash earnings increased by 5.9% to $4.07bn. EPS based on NPAT for ordinary shareholders increased by 7.3% from 231.9 to 248.8c while cash EPS improved by 8.2% from 248.2 to 268.5c reflecting underlying growth in core businesses and active capital management initiatives. Contributions to group cash earnings before distributions of $4.253bn were Retail Banking $3.11bn (+4.4%), Corporate & Institutional Banking $846m (+3.4%) and Wealth Management $374m (+28.1%). Cost-to-income (banking) increased marginally from 47.5% to 47.9% with European operations (excluding pension costs) causing the increase. Other banking operations recorded improved ratios. Gross loans and advances increased by 7% ($16.6bn) to $252.1bn driven by a 16.1% ($15.5bn) increase in housing. Net interest margin fell by 14 points from 2.67% to 2.53% with 11 points in H1 with some stability in H2 although the exit margin of FY03 was 2.50%. Group banking net interest income was just 2.8% higher with volume being offset by margin pressure. Little specific guidance provided for the current year.The 'Positioning for Growth' strategy should underpin earnings growth over the next three to five years.

30/09/03

Leading Index

ASX 20

Sector Index

Financial-x-Property Trusts

Industry Group

Banks