NAB confirms $360 million FX loss
(27 January 2004 – Australia) National Australia Bank has put the amount lost from rogue currency trades at $360 million.
"The total pre-tax loss includes $185 million announced last week and an additional $175 million from revaluation of the trading book. This will result in a pre-tax loss of $252 million," the bank said.
NAB chief executive Frank Cicutto said the bank, with the help of PricewaterhouseCoopers, had carried out a detailed internal revaluation as quickly as possible to accurately determine the extent of losses resulting from foreign currency trades.
"The foreign currency traders exploited weaknesses in our internal procedures," Cicutto said.
"We have identified those weaknesses and closed them. We are conducting a comprehensive investigation into the matter and we will take whatever action is necessary," he said.
Last week, Cicutto broke his silence to say the losses would have a short-term impact on the bank’s profit this year but said it needed to be kept in context that NAB produced a net profit tax last year of $5.6 billion.
The Australian Securities and Investments Commission said it had started an investigation to see whether the bank had breached the Corporations Act.
NAB chief executive Frank Cicutto said the bank, with the help of PricewaterhouseCoopers, had carried out a detailed internal revaluation as quickly as possible to accurately determine the extent of losses resulting from foreign currency trades.
"The foreign currency traders exploited weaknesses in our internal procedures," Cicutto said.
"We have identified those weaknesses and closed them. We are conducting a comprehensive investigation into the matter and we will take whatever action is necessary," he said.
Last week, Cicutto broke his silence to say the losses would have a short-term impact on the bank’s profit this year but said it needed to be kept in context that NAB produced a net profit tax last year of $5.6 billion.
The Australian Securities and Investments Commission said it had started an investigation to see whether the bank had breached the Corporations Act.
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