National Australia Bank Reports Record Group Operating Profit

Strategic Insights -

The National Australia Bank (NAB) has announced a record group operating profit of $3,377 million for the year to September 30, 2000, an increase of 19.8 percent on the previous year. This milestone demonstrates the bank's strong growth in lending and fee-based activities, as well as its commitment to cost and risk management. The result includes a significant contribution from the acquisition of MLC Limited in June 2000, which added $107 million to the bank's profit.

Key Takeaways:

  • The NAB's group operating profit increased by 19.8 percent to $3,377 million in the year to September 30, 2000, with 47.3 percent of this profit ($1,598 million) generated outside Australia.
  • The bank's acquisition of MLC Limited in June 2000 contributed $107 million to its profit, comprising $54 million of margin on services profit and $53 million of revaluation gains.
  • During the past 10 years, the bank's net profit has increased by a compound average of 16 percent a year.
  • The NAB has declared a fully franked final dividend of 64 cents a share, payable on December 13, 2000, an increase from 112 cents to 123 cents a share fully franked for the year.
  • The bank's earnings attributable to ordinary shareholders rose 13.2 percent from 186.6 cents to 211.3 cents for the year.
  • Underlying profit (before tax, charge for doubtful debts and abnormals) was up 18.9 percent from $4,928 million in 1999 to $5,862 million for the current year.
  • The NAB has successfully completed a major acquisition, continued to streamline its global operating model, and increased the value it is deriving from its core businesses.