NAB takes safeguard against downturn

National Australia Bank has raised its provisions to deal with the impact of an economic downturn by $250 million, a move that will negatively impact its full year earnings.

NAB on Thursday said low levels of consumer and business confidence had reduced the outlook for economic growth in 2013, while conditions in the United Kingdom had further deteriorated in the last three months.

In response, the bank said, it had increased the economic cycle adjustment on its collective provisions by $250 million, or $175 million after tax, as of September 30.

The increase in collective provisions will be reported in NAB's cash earnings for its fiscal 2012 year, which ended on September 30.

NAB shares fell on the news, down 69 cents, or 2.6 per cent, at $26.26 at 1019 AEDT.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9327-0.0005-0.05%
    AUDUSD=X
    0.5555-0.0003-0.05%
    AUDGBP=X
    0.6753-0.0003-0.05%
    AUDEUR=X
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