Message from Managing Director National Receives Boost from Overseas Banks A good performance from its international operations gave the National Australia Bank Group a 9.3 per cent lift in profit to $1,643 million for the nine months to June 30. This compares with $1,503 million for the previous corresponding period. Underlying profitability also improved. It rose 7.9 per cent from $2,553 million in 1996 to $2,755 million in the latest period. The $504 million profit for the June 1997 quarter was in line with the $505 million earned for the June quarter in 1996. Earnings per share rose 7.1 cents from 104.1 cents to 111.2 cents reflecting the benefits of the Group's active capital management policy and share buy-back program. Results in Australia were relatively flat. Profit of the Australian region was $1,013 million for the nine months compared with $1,024 million in the previous corresponding period. The Group's European operations continued to perform well. Profit rose 34.5 per cent from $258 million to $347 million. Results from New Zealand, Asia and Michigan National in the United States were also pleasing. The profit contribution from overseas increased from 31.9 per cent in June 1996 to 38.3 per cent in June 1997. In commenting on the latest results, Group Managing Director, Mr Don Argus said the results demonstrated the benefits gained from a broad spread of operations. "The strong performance of Europe and other international operations offset what is an extremely competitive operating environment in Australia. "The continued pressure on margins in Australia means we will have to quickly address the need to gain a better balance between interest and non interest or fee income. "We will also need a renewed focus on labour and other operating costs here," Mr Argus said. Net interest income for the Group rose 3.5 per cent from $3,775 million to $3,906 million. Non interest income was up 12.7 per cent from $2,155 million to $2,428 million. The Group's cost to income ratio (excluding goodwill) improved from 55.3 per cent to 54.8 per cent. In Australia, lending volumes continued to grow strongly, particularly in fixed rate business products, leasing and housing. National Australia Financial Management continued to increase operating income. Its contribution to consolidated operating profit rose from $13 million in the nine months to June 1996 to $26 million in the latest period. The Group continued to expand its asset base with a 17.6 per cent increase from June 1996 to over $200 billion. Melbourne, 24 July, 1997. For further information: H.E. (Haydn) Park
Group Manager
Media Relations
Tel: (03) 9641 3857 | Ron Burke
General Manager
Group Corporate Relations
Tel: (03) 9641 3876
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