The effects of the global financial crisis are lifting, with the National Australia Bank posting unaudited cash earnings for the first quarter of approximately $1.1 billion, an increase of more than 20% on the fourth quarter of the 2009 financial year.
In a further promising sign for the economy NAB’s charge for bad and doubtful debts (partially or completely written off by the bank) in the December quarter
was $202 million lower at $739 million compared to the September 2009 quarter.
“Our businesses delivered a sound result in the December quarter. This was achieved despite subdued credit growth, heightened competitive pressures and a continued upward trend in average funding costs,” National Australia Bank Group CEO Cameron Clyne said.
Customer complaints are also down with the bank due to the removal of fees across many of NAB’s accounts.
“In Australia actions taken to eliminate many customer unfriendly fees, as part of creating a sustainable long term business, have delivered a significant reduction in customer complaints. Since July we have seen a steady improvement in NAB’s personal customer satisfaction levels. We are attracting new customers and also retaining more customers. In the financial year to the end of January, new transaction account openings are up by 25% while closures have fallen by 22% compared to the same time last year.”
