(11 May 2012 – Australia) National Australia Bank (NAB) reported a first-half cash profit rise of 4.8 percent to a record A$2.83 billion.The bank has counted the cost of its struggling operations in Britain and joined it’s rivals in reporting thinner margins on its loans.
NAB’s first-half net profit came in at A$2.052 billion, down 15.5 percent from a year earlier.
The bank’s first-half cash profit compares with A$3.2 billion for Westpac and the ANZ’s A$2.97 billion, reported last week.
The big profits come as banks remain under political and community pressure for not passing on the Reserve Bank’s full 50 basis point cut last week.
NAB flagged the first-half results last week when it revealed plans to overhaul its British operations, including the loss of some 1400 jobs.
As announced last week, NAB’s bleeding UK operations checked profit growth.
The bank said in April it plans to cut the size of its UK operations, which comprises more than 300 Clydesdale and Yorkshire branches, after deciding it was too hard to sell or expand the business in a depressed market.
The UK bank posted a loss of A$36 million, down from a A$122 million profit in the previous corresponding period.