NAB posts 20% profit

9 November 2007

National Australia Bank (NAB) has met profit forecasts after posting a 20 per cent rise in second-half profit.

Strong loan growth and revenue growth above the industry average in its key consumer banking were the reasons behind the reported cash profit of $2.114 billion.

Speaking to Reuters, Angus Gluskie, a portfolio manager with White Funds Management, who has shares in NAB, said: "They have managed to keep their costs moderately under control and certainly there are expectations now that they will be able to keep cost growth at sub-inflation levels for up to 2010."

NAB shares have been the second-worst performing of all the major Australian banks this year after rising 6.4 per cent compared to the benchmark 18 per cent.

John Stewart, group chief executive of the bank, said there was not direct exposure to distressed sub-prime loans but he felt the conditions in the credit market would slow business.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development