800 Bourke Street
Docklands VIC 3008
Thursday, 13 October 2016
NAB revised comparative financial information following sale of 80% of life insurance business
On 3 October 2016, National Australia Bank Limited (NAB) announced the successful completion of the sale of 80% of NAB's life insurance business to Nippon Life. As a result of the sale, the life insurance components that were sold are classified as 'discontinued operations' for the reporting period ended 30 September 2016 with all comparative financial information restated in accordance with Australian Accounting Standard AASB 5 "Non-current Assets Held for Sale and Discontinued Operations", and excluded from cash earnings.
NAB will report results for the period ended 30 September 2016 on 27 October 2016. As this will be the first time the results are presented with the life insurance operations being classified as 'discontinued operations', the accompanying information has been provided to show the impact of the discontinued operations on comparative financial information for the relevant 2015 and 2016 reporting periods.
The restatement of the comparative financial information has been undertaken in accordance with the presentation requirements of AASB 5. In some instances this will differ for cash earnings to what was previously reported between the investment business and insurance business to include the following:
· Items reclassified from insurance results to investment results as they do not form part of the discontinued operations and remain within the Group;
· Annuities and related products (closed non-super traditional products) are reclassified from investment results to discontinued operations as they form part of the sale; and
· The 20% stake in the life insurance business that is retained by NAB is accounted for as an associate with comparative information for prior periods restated to reflect the Group's share of profits in this holding for cash earnings only.
For further information:
Mark Alexander Jessica Forest
M: +61 (0) 412 171 447 M: +61 (0) 457 536 958
Ross Brown Natalie Coombe
M: +61 (0) 417 483 549 M: +61 (0) 477 327 540
NOTE ON CASH EARNINGS
This comparative financial information pack is intended to be read in conjunction with the 31 March 2016 Results Announcement. Full details on how cash earnings is defined, a discussion of non-cash earnings items and a full reconciliation of statutory net profit attributable to owners for the period ended 31 March 2016 is set out on pages 2 to 7 of the 2016 Half Year Results Announcement under the heading "Profit Reconciliation".
This information is provided by RNS