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Volatility in the market has driven NAB’s net profit down 42.9 per cent to $2.6 billion during 2009.
Earlier today, the bank released its full year results for 2009 which showed higher funding costs had also driven down NAB’s cash earnings 1.9 per cent to $3.8 billion for the year.
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NAB group chief executive officer Cameron Clyne said despite the bank’s deteriorating asset quality and higher funding costs, the results were still solid thanks to strong revenue growth and continued cost control.
“In a weak economic environment when confidence levels within financial markets were still fragile, we had to strike a careful balance between the various expectations of our shareholders, customers and the community. Our actions on fees and continuing to support our customers will stand us in good stead as markets recover,” Mr Clyne said.
According to Mr Clyne, next year is expected to bring with it a marked improvement in profit thanks to the addition of the Challenger mortgage management business.
“Once complete, this acquisition will represent an important component of our Retail Banking growth strategy. Our business bank continues to be a key component of organic growth, with 145 additional frontline bankers appointed during the year and plans to add a further 200 during 2010,” he said.
