National Australia Bank Ltd
(ASX:NAB) says cash earnings for the first quarter rose 20% to $1.1 billion from the final quarter of the year following a fall in bad and doubtful debts.
The charge for bad and doubtful debts was $739 million in the December quarter, $202 million lower than in the September quarter.
The company says the result included a contribution of $33 million from recent acquisitions.
CEO Cameron Clyne says the sound result for the December quarter was achieved despite subdued credit growth, heightened competitive pressures and a continued upward trend in average funding costs.
Mr Clyne says bad and doubtful debt charges have fallen and are not expected to return to the peak experienced in the third quarter of the 2009 financial year, however he says given the fragile global recovery and uncertain regulatory environment, a conservative approach to capital and liquidity management remains appropriate.
Mr Clyne also says work to finalise NAB’s proposal to acquire the Australian and New Zealand businesses of AXA Asia Pacific Holdings is on-going.
For the 12 months to September 30, 2009 NAB posted profit of $2.589 billion.
