NAB Flags profit hit ahead of first half result
NAB -2.38%: it was NAB’s turn today to confess ahead of reporting season. The bank increased remediation provisions for the half to $288m pre-tax while changes to software capitalization will have a $742m impact on earnings and the carry value of the investment in MLC Life will be reduced by 20% for a $214m hit to after tax earnings. The confession was largely expected by the market as the new CEO looks to rebase earnings. Key to note that software capitalization balances and the value of the Life investments are both deducted from Group CET1 capital so there is little change in the bank’s capital position. NAB traded in line with the rest of the Big 4 despite the news.
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