NAB shares drop after flat first-quarter cash earnings

Australians that have money in an NAB bank or saving account might not benefit from hearing that its shares have decreased.

People with NAB bank accounts or savings accounts may not enjoy hearing that its shares have dropped.

The bank reported flat first-quarter cash earnings, which meant its shares decreased by 2.7 per cent, as reported by Reuters.

And reports are that its banking business has not recovered as fast as others since the global financial crisis.

But it is now "actively pursuing" AXA Asia Pacific, the subject of a $12 billion takeover battle.

However, Christopher Hall - a banking analyst at Argo Investments - said: "NAB has not recovered as fast as the others and such an acquisition will be dilutive to start with and earnings are a lot more susceptible."

This news comes after the Commonwealth Bank of Australia reported earlier this month that it had managed to make a $2.94 billion half-year profit after deciding to keep its interest rates on its bank accounts and other products low, as reported in the Herald Sun.

By Emma North