Bell Potter

Cash EPS 245cps (BP 243cps, consensus 242cps) | Cost to income ratio 41% (BP 43%, consensus 43%); and CET1 capital ratio 9.8% (BP 9.4%, consensus 9.4%). | Bad and doubtful debt (BDD) charge $800m/15bp (BP $857m/16bp, consensus $871m/16bp); | Outlook: As expected, 99cps final dividend was maintained although the bank noted this “reflects current circumstances” – we take this to mean the 2016 cash earnings profile that will change in 2017 with the removal of 80% of MLC Life earnings. However, NAB still retains surplus franking credits of $548m. Overall a good outcome for NAB.


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