Financial Performance and Remediation Update
GROUP CASH EARNINGS RECONCILIATION TO STATUTORY NET PROFIT
• NAB uses cash earnings (rather than statutory net profit attributable to owners of NAB) for its internal management reporting purposes and considers it a
better reflection of the Group's underlying performance. Accordingly, information is presented on a cash earnings basis unless otherwise stated.
.
Cash earnings is not a statutory financial measure and is not presented in accordance with Australian Accounting Standards nor audited or reviewed in
accordance with Australian Auditing Standards. Cash earnings is calculated by excluding discontinued operations and certain other items which are included
within the statutory net profit attributable to owners of NAB. These non-cash earning items, and a reconciliation to statutory net profit attributable to owners of
NAB, are presented in the table below.
• The definition of cash earnings is set out on page 10 of the 2021 Full Year Results Management Discussion and Analysis, and a discussion of non-cash
earnings items and a full reconciliation of the cash earnings to statutory net profit attributable to owners of NAB is set out on pages 75 - 77 of the same
document. The Group's financial statements, prepared in accordance with the Corporations Act 2001 (Cth) and Australian Accounting Standards, and is
audited by the auditors in accordance with Australian Auditing Standards, are set out in the 2021 Annual Financial Report.
Cash earnings
FY21 ($m)
FY21 v FY20
6,558
76.8%
2H21 ($m)
2H21 v 1H21
3,215
(3.8%)
Non-cash earnings items (after tax)
Distributions
Hedging and fair value volatility
13
(66.7%)
large
(63)
85.3%
63
large
Amortisation of acquired intangible assets
(4)
(98.2%)
(4)
large
Acquisition, integration and transaction costs
(33)
large
(33)
large
Net profit from continuing operations
6,471
85.0%
3,241
0.3%
Net loss attributable to owners of NAB from discontinued operations
(107)
(88.6%)
(85)
large
Statutory net profit attributable to owners of NAB
6,364
large
3,156
(1.6%)
125
National
Australia
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