(Reuters) – National Australia Bank, the country’s biggest business lender, said on Wednesday its first-half cash earnings rose 1%, helped by growth in lending volumes and lower impairment charges.
The lender posted cash earnings of A$3.58 billion ($2.33 billion) for the six months ended March 31, compared with A$3.55 billion a year ago and the Visible Alpha consensus estimate of A$3.48 billion.
Disciplined cost management, robust business lending and growth in customer deposits aided the company’s operational performance in the first half.
NAB, also Australia’s third-largest mortgage lender, said its net interest margin — a closely watched measure of profitability — was at 1.70% for the period, compared with 1.72% a year earlier and the Visible Alpha consensus estimate of 1.69%.
Housing lending volumes increased 3.2%, while its business and private banking arm logged 5.9% growth in lending.
NAB declared an interim dividend of 85 Australian cents per share, marginally up from 84 Australian cents apiece a year earlier.
($1 = 1.5380 Australian dollars)
(Reporting by Himanshi Akhand and Roushni Nair in Bengaluru; Editing by Shilpi Majumdar)
