The National Australia Bank released its first-quarter trading update last night instead of Friday morning and after the release of the departures of the chairman and CEO.
In it the bank said cash earnings dipped 3% to $1.65 billion from the first quarter of 2017-18. Statutory profit was an unaudited $1.70 billion.
The bank blamed pressure from lower margins in home lending, lower markets, and treasury income.
“Revenue was broadly stable with good volume,” the bank said.
The net interest margin (not given) fell under pressure in home lending and those falls in markets and treasury income, while expenses fell 3% because of job cuts, lower spending on the royal commission and marketing costs.
As the Commonwealth’s first-half report on Wednesday, the NAB’s brief update shows bank margins under pressure, but revenue and income holding up.
Even though both have been very naughty banks, their continuing solid performance shows enormous resilience, which is why their share prices have been rising since Monday.