National Australia Bank lifts earnings 7.7 per cent

Feb 7, 2012, 0:50 GMT

Sydney - National Australia Bank Ltd on Tuesday reported cash earnings for the final three months of 2011 up 7.7 per cent to 1.4 billion Australian dollars (1.5 billion US dollars) despite the nation's weakest demand for mortgages since 1977.

The result compares with 1.3 billion dollars in cash earnings in the equivalent period in 2010.

Chief executive Cameron Clyne said 'higher deposit and wholesale funding costs, softening credit growth and fragile economic conditions' were reflected in the results.

Clyne said he was reviewing the bank's underperforming businesses in Britain.

'It's clear that the UK economy is likely to experience a much longer period of subdued growth, with the ongoing sovereign debt crisis in the eurozone and the continuing austerity program by the UK government,' he said. 'We'll work with UK management to appropriately reposition its business mix and structure for the changed economic environment and improve returns.'

The company's British brands are Clydesdale Bank and Yorkshire Bank.

Link: http://www.nabgroup.com/vgnmedia/downld/1075013.pdf

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