Bulletin: National Australia Bank Can Absorb Foreshadowed Earnings Cut

SYDNEY (S&P Global Ratings) Oct. 2, 2019--S&P Global Ratings today said it believes National Australia Bank Ltd. (NAB; AA-/Stable/A-1+) can absorb additional charges of A$1.2 billion relating to increased provisions for customer-related remediation and a change to the application of its software capitalization policy. Although these additional charges, which NAB announced today, are significant in our view, we believe the amount only marginally erodes the buffer in the bank's financial profile for any further adverse developments. Specifically, we expect that the bank will be able to maintain its capital strength by offsetting the cut in its earnings with a combination of a lower dividend payout and new capital issues.

...October 1, 2019 SYDNEY (S&P Global Ratings) Oct. 2, 2019--S&P Global Ratings today said it believes National Australia Bank Ltd. (NAB; ##-/Stable/A-1+) can absorb additional charges of A$1.2 billion relating to increased provisions for customer-related remediation and a change to the application of its software capitalization policy. Although these additional charges, which NAB announced today, are significant in our view, we believe the amount only marginally erodes the buffer in the bank's financial profile for any further adverse developments. Specifically, we expect that the bank will be able to maintain its capital strength by offsetting the cut in its earnings with a combination of a lower dividend payout and new capital issues....

Bulletin