National Australia Bank has attributed a 19% jump in full-year cash earnings to $5.5 billion to “revenue momentum in business banking and personal banking in Australia and an improved performance from specialised group assets”.
The result, in line with expectations, was boosted by an 11.5% jump in business banking earnings, a 25% lift in personal banking cash earnings and a fall in bad debt.
NAB chief Cameron Clyne says Australia is well placed despite the global economic turmoil.
“There are a lot of concerns about what is happening around the world but we still do maintain that Australia is one of the strongest economies and has a lot of potential for upside,” Clyne says.
The bank also tipped continued strength in Australia’s terms of trade, but noted that sectors outside of mining and services had experienced tough conditions.
“Many of the headwinds holding down growth in other developed economies are present in Australia – asset prices have recently been soft and volatile, households are saving more and are hesitant to borrow, which has been curbing growth in retail spending,” NAB said.
“Consequently while overall economic conditions are buoyant – with economic growth of 3.2% expected in 2011 and 2012 and low unemployment by global standards – the divergence in trading conditions between sectors has been particularly marked.”
The result follows the bank’s decision to dump its court action to force the Victorian sheriff to evict tenants in two properties it has repossessed without 28 days’ notice.
It also comes as Treasurer Wayne Swan urges banks to pass an expected rate cut next week.
Woolworths September quarter sales lift
Retail giant Woolworths has posted a 4.9% lift in September quarter sales to $14.597 billion.
Its supermarket division was up 5.8% but the general merchandise division dropped 1.6% over the quarter.
CEO Grant O’Brien has called it a “solid start to the year considering retail conditions remain challenging”.
“The retail sector continues to be impacted by a lack of consumer confidence which means we have to work harder for every dollar. General merchandise is particularly affected, especially when combined with the deflationary effects of the high Australian dollar.”
Ten Network profit plummets 90%
Ten Network Holdings has recorded a profit decline of more than 90% to $14 million, with the company blaming the loss on some unsuccessful strategic ventures.
Revenue rose 1% to $1.002 billion, with chief executive Lachlan Murdoch saying the results reflected changes that the company has been eager to redirect.
“The company is now well positioned for 2012 with the imminent commencement of its new CEO and a revitalised management team, with a more efficient overhead, better content, and more opportunities for our clients to reach our in-demand younger audience,” he said in a statement.
Ten has undergone a number of restructuring methods, including slashing a number of its staff. It incurred a $46 million charge due to redundancy costs and other write-offs.
Leighton Holdings confirms guidance
Leighton Holdings has confirmed previous guidance of a net profit of between $600 million and $650 million for the full year.
Chief executive Hamish Tyrwhitt said in a statement that a review of its forecast had revealed some extra charges, including a $192 million charge relating to the Victorian desalination project.
“But the review also identified gains and opportunities across our portfolio of more than 400 projects including contract mining, offshore oil and gas, and across the civil/building/infrastructure construction markets,” he said in a statement.
“Looking forward, we remain in a solid position with work in hand of around $44 billion as at September 30, 2011 and our core markets continuing to provide substantial opportunities.”