(Adds details from paragraph 2 onwards) Feb 21 (Reuters) -...

(Adds details from paragraph 2 onwards)

Feb 21 (Reuters) - National Australia Bank (NAB) on Wednesday reported a 3% drop in its first-quarter cash profit compared to the quarterly average of the second-half of fiscal 2023, hit by higher cost pressures and competitive lending.

The country's second-biggest lender by market valuation posted cash earnings of A$1.80 billion ($1.18 billion) for the quarter ended Dec. 31. It had earned A$2.15 billion in the prior corresponding period.

First-quarter revenue excluding the bank's markets and treasury income was broadly flat against the quarterly average in the second half of the previous fiscal year.

This led to a marginal decrease in its net interest margin - a key measure of profitability for banks.

The bank's common equity tier 1 ratio, a closely watched measure of its spare cash, stood at 12.0% as of December-end, compared with 12.22% at the end of September. ($1 = 1.5265 Australian dollars)