National Australia Bank Signals A$1.14 Billion Earnings Hit
20 April 2020 - 1:38AM
Dow Jones News
By Alice Uribe
SYDNEY--National Australia Bank Ltd. will take a 1.14 billion
Australian dollar (US$723.6 million) hit to its first-half
earnings, including more customer-remediation provisions and an
impairment of its MLC Life business.
The bank lender said it had lifted provisions for customer
remediation by A$188 million after tax, which will reduce its
Common Equity Tier 1 Capital ratio by around 6 basis points.
NAB said a change to its software capitalization policy will
reduce earnings by A$742 million after tax, while the impairment of
the carrying value of its investment in MLC Life will shave a
further A$214 million from its 1H result.
"The change to the software capitalization policy and impairment
of NAB's investment in MLC Life have no impact on the group's CET1
ratio," the bank said.
At the same time, NAB announced a reporting change for its
Wealth division. Starting with its first-half result, NAB's Wealth
business will be reported as a separate segment called MLC Wealth
and will no longer be part of Consumer Banking.
"The group's 1H results announcement will include individual
divisional reviews for both Consumer Banking and MLC Wealth," NAB
said.
The bank said it would provide further information about the
impact of the Covid-19 pandemic on NAB's earnings and balance sheet
including provisions, combined with capital and dividend
implications at its first-half result in May.
Write to Alice Uribe at alice.uribe@wsj.com
(END) Dow Jones Newswires
April 19, 2020 19:23 ET (23:23 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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