Technology investment leads to profit increase for National Australia Bank

NAB tech

The beginning of the 2015 financial year has seen an increase in digital sales and services for National Australia Bank and profits have grown by 5.4%.

National Australia Bank (NAB) told ZDNet that their further investment in technology has led to the ongoing migration of customers to self-service banking platforms. NAB recorded that 72% of the total transactions were digital and 49% of those transactions were through the bank’s internet banking platform and 23%, through the NAB mobile application.

Technology investments have also enabled the bank to create NAB View, a business banking portal which provides a full view of approximately 135 million customer records. The bank also launched NAB Now earlier this year, which enables smaller business customers to accept payments from smartphones and tablets and make sales in any location and at any time.

Operating expenses rose from AU$4262 million to AU$4460 million, which the bank stated was due to technology costs. Alongside this, NAB’s shares are in a trading halt because of the launch of an entitlement offer that is expected to raise AU$5.5 billion.

NAB’s CEO Andrew Thorburn said that the money raised would be used to aid an initial public offering (IPO) of shares in its UK operations, which includes Clydesdale Bank, by the end of this year. “In relation to exiting our UK banking business, we have been examining a broad range of options, including those provided by public markets. It is a priority to exit this business, and we are today announcing our intention to pursue a demerger and IPO of the UK banking business,” Thorburn said.

It was also reported that former federal Treasury secretary Ken Henry will succeed NAB chairman Michael Chaney, who will retire at the bank’s annual general meeting in December.

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