SYDNEY, Oct. 27 (Xinhua) -- National Australia Bank (NAB) has posted a full-year cash profit of 6.48 billion Australian dollars (4.94 billion U.S. dollars) for the 2015/16 period, which is an increase of 4.2 percent, the company said on Thursday.
The bank's bad and doubtful debt charges was up 7.0 percent to 800 million Australian dollars (610 million U.S. dollars), expenses rose by 2.2 percent while net interest margin declined two basis points to 1.88 percent mainly due to higher funding costs.
The Melbourne-based bank's net profit fell 94.4 percent to 352 million Australian dollars (268 million U.S. dollars ) due to the big loss recorded against the sale of CYBG (formerly known as Clydesdale Bank) in the Britain and NAB's life insurance business.
"This has been a milestone year for the group with the completion of major divestments including our exit from CYBG and the sale of 80 percent of our life insurance business to Nippon Life," NAB Group chief executive Andrew Thorburn said in a statement to the Australian Securities Exchange Ltd.
"These changes have been achieved while delivering an improved operating performance and maintaining a strong balance sheet, sound asset quality and tight control of costs."
"This is against a backdrop of favourable Australian and New Zealand economic conditions, but also rising funding costs and global uncertainty," Thorburn said.
NAB had declared a dividend payout of 2.63 billion Australian dollars (2.00 billion U.S. dollars) or 99 cents (75 U.S. cents) per share to its shareholders, which was the same amount dividend it paid out in the previous corresponding period.
CMC Markets chief market strategist Michael McCarthy told Xinhua that shareholders were very pleased with the NAB's full-year performance resulting in a positive outlook on the stock at Thursday's trade.
At 15:58 local time (AEDT), NAB shares were up by 0.95 percent, at 27.72 Australian dollars (21.15 U.S. dollars).
