National Australia Bank Limited’s (ASX:NAB) has reported a 20 per cent drop in its first quarter profit of approximately $1.26 billion, down from $1.6 billion in the same period last year.
The bank however lifted its unaudited cash earnings to $1.45 billion in the three months to the end of December, up from $1.4 billion.
NAB attributed the difference between cash earnings and profit to losses on fair value and hedging impacts.
CEO Cameron Clyne says the result is pleasing given ongoing challenges in operating conditions in Australia and the UK, recent improvements notwithstanding.
Mr Clyne said lowered costs and an improved funding mix meant the restructuring of NAB’s core UK banking business was proceeding well.
NAB generated a net profit of $4.08 billion in its 2012 financial year.
NAB Price at posting:
$28.68 Sentiment: None Disclosure: Held
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