By Ross Kelly
SYDNEY--National Australia Bank Ltd. (NAB.AU) reported a higher
third-quarter profit following a reduction in bad debt at its
ailing U.K. unit.
The company said Tuesday net profit for the three months through
June was 1.70 billion Australian dollars (US$1.37 billion). The
company didn't provide a year-ago comparison Tuesday, although in a
statement this time last year it said third-quarter profit was
A$1.2 billion.
Cash profit--a measure more closely watched by analysts because
it strips out nonrecurring gains and losses--rose to A$1.5 billion
from the A$1.4 billion reported by the company a year earlier.
The better result came as the U.K. economy grew in the
second-quarter, raising hopes that a sustained recovery may take
hold.
The Australian bank's local operations were helped by higher
mortgage volumes as interest rates fell to record lows. Business
banking cash earnings were flat amid "ongoing weak confidence", the
bank said.
Write to Ross Kelly at ross.kelly@wsj.com
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