-- National Australia Bank's (ASX:NAB) cash earnings in the half-year through March missed estimates on a one-off charge related to its software capitalization.
Australia's largest business lender logged cash earnings of AU$2.64 billion during the six months through March, down 26% from AU$3.58 billion in the year-ago period, according to a Monday press release.
Earnings per share shrank to AU$0.861 from AU$1.145 a year earlier.
Analysts polled by FactSet forecast earnings of AU$0.97.
The bank incurred AU$1.35 billion in technology expenses related to the amortization of software. Cash earnings fell due to changes with the bank's software capitalization policy. NAB recorded a post-tax charge of AU$949 million.
NAB's software write-offs are "right in the middle of peers, but admitted they are "far from ideal," Group CEO Andrew Irvine said in an earnings call when an analyst pointed out that the bank had three software write-offs in the past seven years.
Sans the charges, cash earnings would have increased 2.3% to AU$3.59 billion from AU$3.58 billion a year earlier.
Attributable net profit declined 20% to AU$2.76 billion from AU$3.43 billion a year earlier.
Net interest income jumped 2.3% year over year to AU$9.16 billion from AU$8.45 billion.
Net interest margin grew 3 basis points to 1.81%, reflective of higher earnings from the deposit-replicating portfolio, combined with lower deposit expenses and deposit mix benefits.
Net operating income for the six months ended March 31 edged up 3.1% to AU$10.9 billion from AU$10.3 billion a year earlier.
Analysts surveyed by FactSet expected AU$10.96 billion in net operating income.
The board declared an interim dividend of AU$0.85 per share, unchanged from the prior corresponding period, payable July 2 to shareholders on record as of May 8.