(27 October 2010 – Australia) National Australia Bank has announced a 63 percent rise in profit to A$4.22 billion from A$2.59 billion a year ago, as new charges for problem loans fall.The bank’s cash profit, which excludes volatile items and is the basis for paying out dividends, rose from A$3.84 billion to A$4.58 billion at September 30.
The results overtook analysts’ expectations for a cash profit of A$4.49 billion.
Cameron Clyne, NAB’s chief executive, said that the bank feels that the economy is probably going to strengthen in 2011.
‘The big question is when does that strengthening economy translate into business confidence that translates into investment?” Mr Clyne added.
The bank declared a final dividend of 78 cents a share, up from 73c a year ago.
The higher than expected result comes as speculation mounts that the nation’s big four banks will raise rates outside of the Reserve Bank of Australia’s movements, claiming rising funding costs on the international wholesale markets.