The bank reported a 10% increase in revenue during the quarter, benefiting from higher markets income, but importantly its capital position improved to 11.6%, in line with the Commonwealth Bank of Australia Ltd (ASX: CBA).
Cash earnings fell 7% to $1.55 billion, a positive result in the circumstances, and the board decided further COVID-19 loan impairments weren’t required at the current time.
In a sign that perhaps it isn’t as bad for NAB as the other majors, it announced that 16% of deferred loans had seen repayments commenced, with 8% of loans no longer frozen.
One of the interesting insights from the bank reporting has been the spread of repayment deferrals, with Victoria representing just 28%, despite the remainder of the country being in far less stringent lockdown conditions.
This follows reporting yesterday that unemployment rates in Queensland and Western Australia are actually worse than in NSW and Victoria.
Summary: Great result in the circumstances, supporting a second-half dividend.
For a detailed write-up on NAB’s update, check out this article from Rask Media’s Jaz Harrison: NAB (ASX:NAB) reveals more COVID-19 pain in FY20 Q3