NAB's 2nd Half Results to Include A$642 Million in New Provisions, Impairments

   By Stuart Condie 
 

SYDNEY--National Australia Bank Ltd.'s second-half results will include additional one-off items totaling 642 million Australian dollars (US$457.0 million) after the lender said it was raising provisions for customer and payroll remediation.

Australia's No. 3 bank by market capitalization on Friday said it was raising its pre-tax provision for customer-related remediation by A$380 million. An A$135 million provision would be included in its cash earnings when it announces its FY 2020 results on Nov. 5, it said, with A$245 million included in discontinued operations following the sale of its wealth operations earlier this year.

It will also lift payroll remediation provisions by A$128 million and impair the value of property-related assets by A$134 million, NAB said in a filing to the Australian Securities Exchange.

NAB's first-half cash earnings -- a measure of profitability closely watched by analysts -- fell by 51% to A$1.44 billion on A$1.04 billion of one-off items, including A$807 million of coronavirus provisions.

Write to Stuart Condie at [e-mail]

(END) Dow Jones Newswires

October 22, 2020 20:02 ET (00:02 GMT)

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