The NAB numbers are out – and they get their own, seperate, section of the NAB’s website, like the financial report. Not sure if they have been reading ozrisk (I know some of you do) but this is what I suggested to the CBA.
Look here for the reports. They have also added in copies of the tapes of the presentation, so have a listen. I have not (yet) listened when I wrote this, so I will update when I can sit down somewhere quiet and do that.
Interesting reading. They show the effects of the NAB not being able to use their Basel II systems to the fullest as APRA have not given their full stamp of approval, with the assets held under the standardised methodology being much larger as a proportion of total assets than for either CBA or WBC – NAB with over 20% and the others down just below 10%.
Otherwise, and as you expect, capital numbers are almost identical to those of the others out so far – NAB (level 2 basis) at 10.9%, CBA on 11.1% and WBC on 10.8%.
The downturn does seem to be hurting the NAB more, with more than double the impairments carried by the NAB, despite it having a book that is only 10 to 20% larger than its competitors. This is not a worrying number (it is still low) but it shows the NAB was doing a little more risky lending during the good times than the peers so far announced.
A comparison of the housing books shows something similar too. Despite having less residential mortgages outstanding than the CBA (and with a matching proportion of 90dpd loans) it has nearly 3 times the amount impaired. This means either (or both) that they were doing more risky lending or they are taking a much dimmer view of future property prices. My guess it that it is slightly more the second reason than the first, as the 90dpd numbers are so similar.
Meanwhile, the ANZ is taking their announcements right down to the wire. Once out, I will spend some time doing a longer piece after the (now normal) short appraisal. I will also be looking at such fascinating topics as operational risk, market risk and IRRBB.
Until then, ANZ, we are waiting…
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