NAB profits drop 94% on loss-making asset sales
THE former owner of Yorkshire Bank, National Australia Bank, which completed its exit of its UK businesses earlier this year, has seen full year profit drop 94% on the loss-making asset sales of its life insurance and UK banking businesses.
NAB reported a 4.2% rise in cash earnings to $6.48bn while announcing statutory profit of $352m.
NAB said the net profit would have been only 5.6% lower at $6.42bn if the losses on UK banking business CYBG and NAB Wealth’s life insurance division were excluded.
“This has been a milestone year for the group with the completion of major divestments including our exit from CYBG and the sale of 80% of our life insurance business to Nippon Life,” said NAB group CEO Andrew Thorburn.
“NAB moves into 2017 a reshaped business – stronger, simpler and focused on helping our customers in Australia and New Zealand.
“NAB is well positioned to deliver improved customer outcomes and attractive returns for shareholders in the year ahead, with a clear plan and the right organisational structure in place.”