The National Australia Bank has posted a record full-year net profit of $5.21 billion after strong gains in its personal and business banking divisions.
The 23.6 per cent improvement in the year to 30 September comes two years after the NAB announced a campaign to split with its traditional "big four" rivals.
Here's my analysis of the "peoples' bank" result post divorce from the Big Four club, broadcast on The World Today.
NAB remains Australia’s fourth biggest bank by market capitalisation, behind the Commonwealth, Westpac and ANZ.
The bank’s preferred measure of cash earnings also set a new record of $5.46 billion for the year, up 19.2 per cent.
In addition to a 5.7 per cent increase in revenue driven by business and personal banking, NAB’s charges for bad and doubtful debts was down $441 million to $1.81 billion.
The bank’s mortgage book also improved, growing at more than three times the rate of the banking industry.
Despite this NAB chief executive Cameron Clyne would not commit to passing on an official interest rate cut if the Reserve Bank of Australia decided to cut official interest rates next week.
"We don't give a forward looking view on interest rates or speculate on what the Reserve Bank might do," he said.