National Australia Bank cuts dividend, to raise cash

National Australia Bank cuts dividend, to raise cash amid coronavirus pandemic

The company logo indicates the front of National Australia Bank house in Sydney. (Reuters)

National Australia Bank Ltd on Monday said it plans to raise up to A$3.5 billion and increase provisions to more than A$2 billion to guard against a hit from the coronavirus pandemic, and slashed its interim dividend by 64% to save cash.

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Australia's third-largest lender, which paid a dividend of 30 cents per share, also reported that its first-half cash earnings slumped 51.4% to A$1.44 billion ($919.73 million).

NAB had warned earlier this month that profit would be hurt by charges related to provisions it made last year after self-reporting anti-money laundering shortcomings and as a regulator accused it of charging customers "fees for no service".