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Profit Doubles for National Australia Bank due to Higher Business Loans Net income of the National Australia Bank rose to $2.4 billion worth in Australian Dollars in the six months that ended on Sept. 30. This raise is from the previous worth of $1.23 billion (Australian dollars) a year earlier. The National Australia Bank is based in Melbourne. According to the statement of the Chief Executive Officer John Stewart, the bank had beaten a $2.16 billion (Australian dollars) estimate of six analysts that were surveyed. National Australia Bank Ltd is the Australian nation's largest lender. Its second-half profit almost doubled after it loaned more to businesses. Amid the strongest demand for credit by companies since 1989, National Australia Bank increased small business loans to companies by 15 percent. This growth is faster when compared to its two biggest domestic competitors. The data by the Australian Prudential Regulation Authority shows that National Australia Bank has a leading 24 percent share of loans to the nation's businesses. A survey by JPMorgan Chase & Co. and East & Partners Pty., released in September said that more than 80 percent of companies intend to borrow in the next year. These companies with sales with annual sales of between $20 million and $240 million Australian dollars are citing new investments or acquisitions as reasons for seeking finance. Business investment is very strong as companies increased capacity. Easing of credit restrictions and speeding up of loan approvals helped National Australia regain customers. This was after a currency-trading scandal in 2004, when National Australia lost most of its clients. National Australia will pay a second-half dividend of 84 cents a share, which is up from 83 cents a year earlier. The bank plans to slow the pace of growth, in costs, to less than three percent a year. This is after a jump in operating expenses by 7.2 percent in fiscal 2005. |
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