Strong Quarter Lifts National Result A strong June quarter lifted National Australia Bank Group profit (before abnormal items) to $1,728 million for the nine months to June 30. This was 5.2 per cent higher than the $1,643 million profit for the previous corresponding period. Underlying profit for the nine months was up 12.5 per cent from $2,755 million in 1997 to $3,099 million in the latest period. Profit (before abnormal items) for the three months to June jumped 22.8 per cent from $504 million for the June 1997 quarter to $619 million. The latest profit continued the performance improvement shown in the March quarter of 1998. It was $43 million higher than the $576 million earned in the three months to March. Earnings per share (before abnormal items) for the nine months rose 9.7 cents from 111.2 cents in 1997 to 120.9 cents in the latest period. The results reflected solid increases in earnings, continued attention to costs and the impact of the depreciation of the Australian dollar. Net interest income for the nine months increased by $314 million or 7.9 per cent over the previous corresponding period. Other operating income for the nine months increased by 32.6 per cent from $2,116 million to $2,805 million. All of the Group's regional operations recorded increases in profits in the latest quarter. Profit in Australia rose from $292 million in the June quarter of 1997 to $311 million in the latest period. Europe continued its strong growth in earnings with profit up from $132 million to $182 million. The United States results benefited from the HomeSide contribution. Latest quarter profits in the US increased from $27 million to $60 million in the latest quarter. New Zealand recorded a marginal increase in profit from $44 million in 1997 to $46 million for the three months to June 1998. Asia increased quarterly profit from $9 million to $12 million. In commenting on the nine months outcome, Group Managing Director Mr Don Argus said it was a "promising result that demonstrated the progress the Group is making on both income stream development and cost management." "The results also demonstrate that we are efficiently managing the difficult transition from our traditional operations to a new business model." "Our focus will continue on risk management, costs, new business development and the technology systems required to underpin our Group business operations," Mr Argus said. The Group has increased its charge for doubtful debts to $202 million for the June 1998 quarter compared with $122 million for the June 1997 quarter. The Group's actual provisioning coverage is a healthy 46.5% with total coverage (reflecting current period write-offs and the level of the general provision) of 107.3%. "The increased provisioning reflects our view of the current stage of the business cycle in Australia and other economies," Mr Argus said. The Group's cost to income ratio in the latest quarter was 52.4 per cent (excluding goodwill and abnormal items). This compares with 54.3 per cent in the previous corresponding period of 1997 and 55.8 per cent in three months to March 1998. The share of income being derived from non interest sources continued to increase. Non interest income comprised 41.8 per cent of total net income in the three months to June 1998. This compared with 34.5 per cent in the previous corresponding period. Melbourne, 23 July 1998 For further information: Ron Burke
General Manager
Group Corporate
Relations
Tel: (03) 9641 3876 | Haydn Park
Manager
Group Media
Relations
Tel: (03) 9641 3857 | | 
