(24 October 2005 – Ireland) National Australia Bank has said the net profit on the sale of its two Irish banks was A$30 million less than originally estimated.NAB received A$1,043 million from Denmark’s Danske Bank for Northern Bank and National Irish Bank compared to the initial estimate of A$1,073 million.
The sale took place in December 2004.
This was due to the sale completion process needing to be adjusted to previously net interest margins and net interest spreads for the two banks.
“The adjustments are required to correctly record the inter-company balances between the UK and Irish banks, and affect net interest margins and net interest spreads reported for the UK in the 2005 March half year and prior periods commencing September 2003,” the bank said.
NAB said the adjustments would have no effect on the banking group’s profit or margins.