National Australia Bank on Thursday announced a 3.1 per cent year-on-year rise in cash earnings to $2.915 billion for the half year to the end of March 2013.
The bank attributed the performance to higher earnings from its Personal Banking and Wholesale Banking divisions.
Revenue for the half year rose 1.6 per cent. Statutory net profit rose 22.8 per cent on the same period in the previous year to $2.52 billion.
The bank declared a half-year dividend of 93 cents a share fully franked, up 3.3 per cent on the same half in the previous year. The dividend is payable on 16 July 2013 to shareholders on the record as of 5 June 2013.
Wholesale Banking was also a key contributor to the group's positive result as it increased cross-sell to the group's customers.
NAB confirmed that the current environment remains challenging - especially in the UK and that the strategic review of its beleaguered UK operations is proceeding ahead of plan.
Although a good result overall the market was disappointed with NAB falling $0.69 by market close.
I expect that the yield focused investors, were counting on the special dividend or a larger increase in the dividend.
NAB is trading at the very top of our valuation as such it is not one to buy right now however it is still paying gross 8%, as such I continue to hold the company.
For more information on National Australia Bank (NAB) please contact us on 07 4771 4577.