The National Australia Bank Ltd. (ASX: NAB) share price was up 0.61% at the time of writing to $18.12 after the company released its quarterly report for the 3 months ended 30 June 2020.
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What was in the announcement?
NAB announced unaudited statutory net profit of $1.50 billion for the June quarter. Unaudited cash earnings were $1.55 billion with cash earnings, down 7% compared to the 3rd quarter of 2019.
The bank recorded credit impairment charges of $570 million versus impairments of $976 million in the second quarter of 2020.
NAB's common equity tier one ratio was 11.6% at 30 June.
The bank also reported that 12.3% of the balance of all home loans outstanding were deferred in June 2020.
NAB CEO Ross McEwan commented on the result, stating:
The COVID-19 pandemic continues to challenge our customers and our bank, with varied impacts across industries and communities. The outlook remains highly uncertain, but decisive actions in April to strengthen our balance sheet allow us to support customers, while keeping our bank safe.
Our repayment deferrals are providing vital assistance to customers, in combination with significant relief from governments and regulators. Encouragingly, about 16% of home loan deferral customers contacted via our check-ins have recommenced repayments. However, many customers still face an uncertain future. Where it makes sense, we will offer them extra support to help manage through the pandemic, but providing further credit won't always be the right thing to do.
He confirmed the bank still has a long-term view despite the current challenges, adding:
Our 3Q20 result is reflective of the current operating environment, characterised by volatile markets, subdued credit demand, low interest rates, cost pressures and deteriorating asset quality. In navigating these near-term challenges, we have not lost sight of the need to invest for NAB's long term future.
About the NAB share price
National Australia Bank is one of Australia's big four banks and was formed by a merger in 1982. NAB offers business banking, personal banking, online banking and private banking to its customers.
In May, NAB raised $4.25 billion from investors through an institutional placement and a retail share purchase plan. The issue price was $14.15 per share.
The NAB share price is up 37.27% since its 52 week low of $13.20, however, it is down 26.43% since the beginning of the year. The NAB share price is down 34.46% since this time last year.
