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Highlights
- NAB reports a 6.1% decrease in statutory net profit to AU$6.96 billion for 2024.
- Cash earnings fell by 8.1% to AU$7.1 billion due to inflationary pressures.
- Earnings per share (EPS) declined by 10.1%, in line with analyst expectations.
- Common Equity Tier 1 (CET1) capital ratio remains solid at 12.35%.
- Total annual dividend per share slightly increased to AU$1.69.
National Australia Bank (ASX:NAB) has announced its financial performance for the 2024 fiscal year, revealing a statutory net profit of AU$6.96 billion. This marks a 6.1% decline compared to the previous year’s AU$7.41 billion. Similarly, cash earnings fell by 8.1%, reaching AU$7.1 billion, as the bank navigated a challenging economic landscape marked by persistent inflation and rising living costs.
Earnings per share (EPS) dropped to 227.9 cents, down from 238 cents in 2023, representing a 10.1% year-on-year decline. This EPS outcome aligns closely with analyst expectations, which projected AU$2.25 per share. NAB’s statutory net profit also met market expectations, with predictions hovering around AU$7 billion.
The bank has managed to sustain its robust financial foundation, maintaining a Common Equity Tier 1 (CET1) capital ratio of 12.35%. This strong capital position highlights NAB’s resilience and readiness to manage potential economic uncertainties. In the face of profit declines, this ratio is a positive signal for investors, reflecting the bank's cautious approach to risk management and its emphasis on maintaining stability in a volatile economic environment.
For shareholders, NAB declared a final half-year dividend of 85 cents per share, resulting in a total annual dividend of AU$1.69 per share. This payout slightly exceeded both analyst forecasts of AU$1.68 per share and last year’s dividend of AU$1.67 per share. The increase in dividend, albeit modest, illustrates the bank’s commitment to delivering value to its shareholders even amid reduced earnings.
NAB’s Chief Executive Officer, Andrew Irvine, emphasized the bank’s focus on enhancing the customer experience and strengthening its operational efficiency. "Our focus has been on enhancing customer experience, simplifying our operations, and accelerating investments in digital innovation," Irvine stated. He also pointed to NAB's tailored financial support programs, aimed at assisting customers grappling with financial pressures, and highlighted the bank’s expanded range of digital financial tools as part of a strategy to better serve customer needs.
These digital advancements, Irvine explained, are designed to help customers navigate complex financial situations, including those brought on by economic pressures. By streamlining its digital offerings and offering targeted hardship assistance, NAB aims to provide customers with greater flexibility and resources during financially demanding times.
