NAB reports 22% profit rise

10 August 2010

National Australia Bank (NAB) has reported a 22 per cent profit rise in its figures for the fiscal third quarter.

Its unaudited cash earnings in the three month period up to June 30th 2010 stood at A$1.1 billion ($1 billion), up from A$900 million 12 months ago.

While charges for bad debts decreased, NAB chief executive officer Cameron Clyne has warned that demand for corporate loans may not pick up until 2011, reports Bloomberg.

"The return to business system credit growth may be delayed," he stated, but added that the "pipeline remains strong" for such lending.

Mr Clyne forecast that demand for corporate loans in Australia will go up by 6.5 per cent next year, with NAB's operations growing at an above-average pace.

In May, NAB reported that cash earnings for the previous six-month period stood at A$2.2billion, up 20.9 per cent on the September 2009 half year results and 8.2 per cent on the March 2009 six-month figures.

By Claire Archer

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