NAB reports cash profit of $5.94 billion

But revenues up by only 2%.

National Australia Bank said that for the year ending September 30, cash earnings improved 9.3% or $503 million to $5.94 billion. Cash earnings adjust for items including changes in fair value of hedges and a provision raised for costs associated with UK payment protection insurance.

Revenues across the group, however, rose by only 2% while operating expenses increased by 1.9%, excluding restructuring costs and foreign exchange movements. The major boost to the bottom line came from lower loan losses, which fell by $681 million to $1.93 billion, reflecting improved asset quality trends.