Nab Cost Information Analysis Essay

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NAB Cost Information Analysis When analysing the expenses made by the National Australia Bank, it is important to consider that the Annual Report is utilised to obtain as much information regarding expenditure as possible. The National Australia Bank (2014) annual report states that the company had a total of $10.438 Billion in operating expenses for the year ending June 30th 2014, a net increase of 21% for the year, in comparison to the year ending June 30 2013. It is clear however, that the company has recovered the majority of their accounts and moving further toward superior performance with low doubtful or bad debts (NAB, 2014). This plays as a key in the development of the National in its pursuit of becoming a better performing firm. The company spent $4.532 Billion in ‘personnel expenditure’ a net increase of 3.1% from the results recorded in 2013. In an understanding of wages and salaries expense with respect to revenue, an efficient firm can operate well if their salaries and personnel expenditure is at approximately between 15 – 30% of the net revenue (Second Wind, 2015). The company is currently operating their wages and salaries…show more content…
Banks such as the NAB, do not often own the property in which the branch is operated in and thus it relies on paying rental expense, possibly for it being a taxation deduction. The company spent a total of $645 Million for the year ending 30 June 2014, with an increase of $45 Million spent in 2013. The net increase of 7.5% is most likely a combination of CPI increases in rent, a regular practice in commercial real estate as well as the maintenance and potential increase in the amount of branches, with over 1,700 stores nationally with NAB (2015) alone, and many more overseas, such as Yorkshire Bank operating 182 branches across the United Kingdom alone, to name one of their subsidiaries (Yorkshire Bank,
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