ASX Announcement - Final adjustments for sale of Irish banks - 24 October 2005

National Australia Bank today announced, that following final adjustments made to the sale completion accounts, the net profit on sale of the Northern Bank and National Irish Bank was $1,043 million compared to the initial estimate of $1,073 million.

The sale completion process also identified the need for an adjustment to previously reported net interest margins and net interest spreads for the NAB's United Kingdom banks.

The adjustments have no effect on previously reported Group profit or margins.

The adjustments are required to correctly record the inter-company balances between the United Kingdom and Irish banks, and affect net interest margins and net interest spreads reported for the United Kingdom in the 2005 March half year and prior periods commencing September 2003.

For the March 2005 half year the reported net interest margin for the United Kingdom ongoing operations (ie excluding the Irish banks) reduces from 4.00% to 3.91% and the net interest spread falls from 3.66% to 3.53%.  There is a similar movement in interest margins and spreads reported since September 2003.

The full details of changes to the United Kingdom net interest margins and spreads at the 2005 March half year are available by clicking on the below link.   The adjustments will also be incorporated in the Group's 2005 full year results to be announced on 9 November.

Final adjustments for sale of Irish banks - full details

For further information:

Brandon Phillips
Group Manager, External Relations
03 8641 3857 work
0419 369 058 mobile

Samantha Evans
External Relations Manager
03 8641 4982 work
0404 883 509 mobile

Hany Messieh
Group Manager, Investor Relations
03 8641 2312 work
0414 446 876 mobile