NAB net profit slumps more than 45pct

One of Australia's big four banks has reported a 46.7 per cent slump in full-year earnings due to the impact of the coronavirus pandemic on the economy.

But National Australia Bank is cautiously optimistic about the future, saying federal government stimulus measures for households and business should "provide a bridge to economic recovery".

NAB's bottom line net profit fell to $2.6 billion for the year ended September, compared with $4.8 billion in the previous corresponding period.

Cash earnings - the bank's usually preferred measure because it includes ongoing operations - declined by 36.6 per cent to $3.7 billion.

Credit impairment charges, which indicate the health of a bank's lending book, rose 201 per cent to $2.8 billion.

This was mostly due to the pandemic's effect on employment and trade.

"Asset quality is starting to deteriorate given economic disruption caused by COVID-19," NAB said on Thursday.

"While the outlook remains uncertain, further deterioration is expected."

NAB declared a fully franked final dividend of 30 cents per share, taking the total payout for the year to 60 cents per share.

The final dividend was down from the 2019 equivalent of 83 cents per share, fully franked.

The big four banks on Wednesday cut fixed interest rates for home loans after the Reserve Bank on Tuesday lowered the cash rate to a record 0.1 per cent.

However, the banks did not lower rates for customers with variable rates, the majority of their customers.

NAB officials on Thursday made several mentions of lower revenue resulting from low rates.

Shares were up 2.03 per cent to $19.08 at 1146 AEDT.

The research arm of financial services provider UBS said the result was solid and encouraged investors to buy NAB shares.