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National Australia Bank’s cash profits edged down by 0.2 per cent in the year to September as it recorded higher charges for bad loans in its business bank and had rising expenses. The country’s largest lender to companies on Thursday said cash earnings were $7.1 billion, almost flat on the prior year, and it remained positive about the economic outlook. The bank said its revenue had increased by 2.9 per cent in the year, helped by loan growth and wider margins, but it also had credit impairment charges tick up, mainly because of business customers facing financial difficulties. Taking a further bite out of profits, expenses also rose 4.6 per cent, which includes a previously announced $130 million charge due to underpayments of wages and staff entitlements. The result is slightly lower than the market had expected, according to estimates previously cited by UBS.
