National Australia Bank's unaudited cash earnings rose to $1.5 billion

Revenue also increased by around 1%.

According to a statement, unaudited cash earnings rose to approximately $1.5 billion, which is around 2% above the quarterly average of the March 2013 Half Year result.

On a statutory basis, unaudited net profit attributable to the owners of the Company for the June quarter was approximately $1.7 billion. The main difference between statutory and cash earnings relates to fair value and hedge ineffectiveness.

On a cash earnings basis:

• Revenue increased by approximately 1% reflecting good growth in mortgages and some improvement in customer margin;
• Expenses rose 2% over the period including upfront implementation costs relating to previously announced changes to the Group’s organisational structure and operating model, and increased provisions for UK conduct and redress matters;
• The charge for bad and doubtful debts (B&DDs) for the quarter was $489 million, down 10% due to lower charges in Business Banking and UK businesses.

For the financial year to date, the Group has raised approximated $23.2 billion of term wholesale funding (including approximately $7.1 billion of secured funding).

The weighted average term to maturity of the funds raised by the Group for the financial year to date was 4.9 years. Over the quarter, the Group funded all loan growth with customer deposits.

The Group’s Basel III Common Equity Tier 1 ratio was 7.97% as at 30 June 2013, lower than the ratio at 31 March 2013 mainly due to the impact of the interim 2013 dividend declaration in May 2013.

During the quarter NAB purchased $300 million of its shares on-market to partially satisfy its obligations under the Dividend Reinvestment Plan.