National Australia Bank has slashed its interim dividend to 30 cents as first-half cash earnings dived 51.4 per cent to $1.46 billion in a surprise early release of the lender’s interim profit result.
The dividend cut from 83 cents a year ago comes as NAB increases its collective provisions for forward-looking economic and targeted sector adjustments by $828 million to $2.14 billion.
NAB has also announced a combined $3.5 billion capital raising through a placement and share purchase plan to help bolster its balance sheet.
Statutory net profit for the half-year ended March 31 was $1.31 billion.
The big four lender had been due to publish its half-year profit result on May 7.