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NAB posts lower than expected net profit

NAB posts lower than expected net profit

(15 August 2012 – Australia) National Australia Bank (NAB) posted a $A1.2 billion profit in the three months to June, saying its revenue dropped due to higher funding costs and weak financial markets. Charges for the restructure of NAB's UK banks were the main reason for the lower net profit, it said.

In a trading update on Tuesday, NAB said its unaudited cash profit for the three months to 30 June was higher than net profit, standing at approximately A$1.4 billion.

Revenue in the three months to June was down one percent from the three months to March, because of higher funding costs in the UK and lower revenue from NAB's markets business, the bank said.

'This quarter's result is set against a backdrop of ongoing challenges in the global economy with continued uncertainty in the euro zone and the United States, volatility in global financial markets, and slowing growth in the big emerging economies,' NAB chief executive Cameron Clyne said in a statement.

'Although subdued business and consumer confidence continue to affect the Australian economy, we remain positive about the outlook.'
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