NAUBF - National Australia Bank Limited (NABZY) Q2 2024 Earnings Call Transcript
2024-05-02 11:28:08 ET
National Australia Bank Limited (NABZY)
Q2 2024 Earnings Conference Call
May 1, 2024 20:30 ET
Company Participants
Sally Mihell - Head, Investor Relations
Andrew Irvine - Group Chief Executive Officer
Nathan Goonan - Group Chief Financial Officer
Conference Call Participants
Andrew Lyons - Goldman Sachs
Jonathan Mott - Barrenjoey
Andrew Triggs - JPMorgan
Victor German - Macquarie Bank
Matt Dunger - Bank of America
Carlos Cacho - Jarden
John Storey - UBS
Richard Wiles - Morgan Stanley
Brendan Sproules - Citi
Ed Henning - CLSA
Matthew Wilson - Jefferies
Presentation
Operator
Thank you for standing by and welcome to the National Australia Bank First Half 2024 Results Presentation. [Operator Instructions] Go ahead, please.
Sally Mihell
Thank you, operator. Good morning, everyone and thank you for joining us today for NAB’s half year 2024 results. My name is Sally Mihell, I am the Head of Investor Relations. I would like to acknowledge the traditional owners of the land I am joining you from, the Wurundjeri people of the Kulin Nation. I’d like to pay respect to the elders past, present and emerging and to the elders of the traditional lands in which you are also joining from.
Presenting today will be Andrew Irvine, our Group CEO; and Nathan Goonan, our Group CFO. We are also joined in the room by members of NAB’s executive team. Andrew and Nathan will provide an overview of our performance this half. Andrew will also provide some comments on the outlook and his priorities for the second half. Following the presentation, there will be an opportunity to ask questions, but you’ll need to be on the phone line.
I’ll now hand to Andrew.
Andrew Irvine
Thank you, Sally, and welcome to everyone for our first half 2024 results. It’s an absolute honor for me to be presenting our results to you all for the first time. I have now been in the CEO role for 5 weeks, and have spent the bulk of my time listening and learning from our customers and from our colleagues. And what I have seen and heard reinforces what I had experienced in my 3.5 years running the business in private bank as part of NAB’s ELT. That is, that this is a good bank that is getting better. We have the right mix of businesses, allowing us to make choices about where to invest and where to grow. We also have a team focused on delivering better outcomes for customers by executing well every day. We saw the benefits of this through the consistent execution of our strategy across all divisions this half in what was certainly a challenging environment. Higher interest rates and inflation are weighing on households and the broader economy, resulting in slower growth across our Australian and our New Zealand markets. Against this backdrop, NAB’s balance sheet settings remain prudent.
Our capital is above our target range, and we have maintained strong provisioning and liquidity levels. The majority of our customers have been resilient to date, reflecting the underlying strength in the employment market, together with strong cash balances. However, we do know some customers are struggling, and we are here to support those who need our help. I recently announced the appointment of new executives to lead our customer-facing businesses in Australia. This completes a strong executive leadership team to take NAB forward. Our financial results this half are pleasing in the context of a relatively strong second half ‘23 results. Underlying earnings decreased by 1.1% as broadly flat revenue was more than offset by higher costs. Cash earnings fell 3.1% over the half as lower impairment charges were more than offset by increase in the effective tax rate. Nathan will spend time shortly discussing in more detail the key drivers of the group’s financial performance....
National Australia Bank Limited (NABZY) Q2 2024 Earnings Call Transcript