FY24 Cash Profit of NAB Has Declined by 8.1%, But the Growth Story Is Undiminished

2 min read | November 07, 2024 04:20 PM AEDT | By Team Kalkine Media

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FY24 Cash Profit of NAB Has Declined by 8.1%, But the Growth Story Is Undiminished — Image source: Shutterstock

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Highlights:

National Australia Bank (ASX:NAB) reports an 8.1% drop in cash profit for FY24, compared to the previous year.

Despite the decline, NAB's second-half performance showed signs of recovery with strong contributions from business banking and housing.

NAB announces a final dividend of 85 cents per share, marking a slight increase over the previous year.

National Australia Bank Ltd (ASX:NAB) has reported an 8.1% decline in cash profit for the 2024 fiscal year, compared to the prior period. This drop in profit comes despite the bank’s stronger performance during the second half of the year, which indicated a recovery from the weaker first half.

For FY24, NAB’s cash profit for the second half reached $7.1 billion, showing resilience in the latter part of the year. The bank’s final dividend for FY24 was set at 85 cents per share, reflecting a modest increase of one cent per share compared to the previous year.

CEO Andrew Irvine attributed the performance to the effective execution of NAB’s strategy and a more stable operating environment in the latter half of FY24. He emphasized that while cash earnings were lower than the strong figures seen in FY23, the second-half performance showed stability, especially in key areas such as business banking and housing.

In particular, NAB’s Business & Private Banking (B&PB) division performed well, with a 7% increase in deposits and an 8% rise in business lending. These gains reflect the bank’s ongoing investment in improving customer outcomes, particularly for small and medium-sized enterprises (SMEs). However, growth in the Australian housing market was subdued, rising by just 3% as NAB navigated competitive pressures. The bank emphasized a disciplined approach to managing its housing portfolio, balancing growth with profitability in a dynamic market.

At the time of the report, NAB shares were trading at $39.25. Despite the overall drop in annual profit, the bank’s steady growth in key business areas and improved performance in the second half suggest a solid foundation for future stability.

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