National Australia Bank Limited · ASX:NAB
National Australia Bank — Merrill Lynch Conference 2009
14 slides from National Australia Bank's conference presentation, Sep 15, 2009
Slide 1: Merrill Lynch conference
Merrill Lynch conference 14 -15 September 2009 Mark Joiner, Executive Director Finance National Australia Bank Limited ABN 12 004 044 937
Slide 2: Economic conditions
Economic conditions Annual growth in global trade, global GDP and OECD economies - 1970 - 2010 System credit growth % change year on year 23 8 18 World economic 7 20 OECD growth (RHS) 16 Australia Forecast 17 6 14 Growth (RHS) F 5 14 12 4 11 10 3 8 8 2 5 1 6 2 0 4 New Zealand -1 -1 2 United Kingdom
Slide 3: Australia continues to outperform with the peak in unemployment lower than expected
Australia continues to outperform with the peak in unemployment lower than previously expected Australian business confidence is now near Actual outcomes have also improved albeit that 6 year highs partly reflects the timing of fiscal initiatives Index Index Index Index 30 30 30 30 Business Confiden
Slide 4: Group result
Group result Half year to Change $m Mar 09 Sep 08 Mar 08 Mar 09 v Sep 08 Mar 09 v Mar 08 Net operating income 8,514 7,775 7,639 9.5% 11.5% Operating expenses (3,770) (3,678) (3,598) (2.5%) (4.8%) Underlying profit 4,744 4,097 4,041 15.8% 17.4% Charge to provide for bad (1,811) (1,763) (726) (2.7%) L
Slide 5: Individual business performance
Individual business performance Home currency Half year to Half year to m Mar 09 Sep 08 Change% Mar 08 Change% Underlying Profit Business & Private Banking 1,808 1,699 6.4 1,506 20.1 Retail Banking 896 800 12.0 729 22.9 MLC 209 267 (21.7) 309 (32.4) UK Region £238 £264 (9.8) £254 (6.3) NZ Region NZ$
Slide 6: June 2009 quarter trading update
June 2009 quarter trading update Key points Unaudited cash earnings approximately $0.9bn1 – reflecting continued solid performance under difficult economic conditions Group revenue slightly lower than 1H09 run rate. Australia Banking and Global Markets Division continued to be areas of particular st
Slide 7: Provisions and coverage
Provisions and coverage B&DD charge B&DD charge ($m) ($m) 2,000 2,000 1,700 1,400 1,500 1,100 1,000 800 500 500 200 -100 0 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 June 09 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Quarter Specific Provision Collective Provision Australia United Kingdom New Zealand Economic Cycle
Slide 8: Tier 1 movement in the June 2009 quarter
Tier 1 movement in the June 2009 quarter^ % 9.00 proforma 0.56 8.75 DRP 0.25 8.50 underwrite 0.06 8.20% (0.12) 8.25 (0.07) 0.01 (0.15) 0.14 8.00 (0.10) (0.13) 7.75 7.50 8.76 7.25 8.31 7.00 8.06 6.75 6.50 6.25 6.00 Mar 09 Cash Dividend Net RWA Aviva BNZ Change in Reversal Other^^ Jun 09 Institutional
Slide 9: Funding and liquidity
Funding and liquidity Group Stable Funding Index (SFI) Liquid asset holdings ($bn) 87 79 19 66 13 72% 72% 76% 8 70% 16% 16% 19% 37 39 17% 29 56% 53% 56% 57% 29 29 29 Sep 07 Mar 08 Sep 08 Mar 09 Mar 08 Sep 08 Mar 09 Customer Funding Index Term Funding Index Mar 07 level Liquids above Mar 07 level Int
Slide 10: Portfolio
Portfolio^ Significant Smaller Strong position, Unsatisfactory upside from businesses, with growth returns today in continuing resilient in tough Group opportunity tough conditions reinvention conditions Contribution (FY08): RWA 48% 12% 8% 32% Cash Earnings1 55% 24% 8% 13% Key Business/ Retail (Aust
Slide 11: Leading Business Banking Position
Leading Business Banking Position No. 1 business lending market share¹ 20.2% (~30% SME) – YTD improved 133 bps No. 1 business deposits market share¹ 24.1% - YTD improved 161 bps Highest business customer satisfaction of the major banks² (in $5M - $100M segment) WA QLD 31 sites 49 sites Rank No 3^ Ra
Slide 12: Creating a broader, stronger wealth business
Creating a broader, stronger wealth business Combining MLC, nab private wealth and Segment Advice Product MoM Asset Mgmt nabInvest creates a wealth division with substantial growth opportunities by; Retail targeting all customer segments including opportunity in HNW HNW participating across entire w
Slide 13: Our priorities
Our priorities Continued momentum Additional emphasis Keep the bank safe Deposit funding Capital allocation Tight management of costs Accelerate efficiency, quality & service agenda Accommodate slower recovery scenario Lead platform replacement & convergence Invest in leadership & culture Ignite com
Slide 14: Disclaimer
This document does not constitute an offer of securities for sale in the United States, or to any person that is, or is acting for the account or benefit of, any U.S. person (as defined in Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”)) (“U.S. Person”)
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