National Australia Bank posts 22% profit slump

31 October 2012

National Australia Bank (NAB) has posted a significant decline in profit this year, it has emerged.

In its latest interim management statement published today (31 October), the major Australasian financier announced it has experienced a slump of 22 per cent in terms of annual profit level so far in 2012.

The lender's net profit fell by some AU $1.1 billion ($1.14 billion) in the nine-month period ending on 30 September and the bank has attributed this downward movement primarily to ongoing problems at its UK division.

Over recent months, the Clydesdale and Yorkshire Banks have struggled due to their rising bad debts caused by toxic property loans.

And NAB - which employs around 50,000 people globally - noted this issue is acting as a drag on its overall profit levels.

Chief executive of the lender Cameron Clyne commented: "The Group result reflects both the strength of the core Australian and New Zealand banking businesses and ongoing challenges in the UK."

By Tony Aynsley

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