National Australia Bank reported a 0.9 per cent fall in net profit today as a result of an “extremely difficult environment”.
For the 2008 financial year the bank’s net profit fell to $4.54 billion compared to $4.58 billion for the year prior.
The result included a $1 billion provision against possible losses on collateralised debt obligations.
While significant, “the loss of approximately $1 billion incurred by nabCapital is considerably less than write-offs by many of our global peers,” NAB chief executive officer John Stewart said.
“The strength of the group’s underlying profit growth allowed this loss to be absorbed and still deliver cash earnings of $3.9 billion, down 10.7 per cent on the prior year.”
Despite the weak result, Mr Stewart was confident about the outlook for the bank.
“I am confident NAB’s operations are well placed to weather this uncertain environment, with the appropriate focus on core businesses and the right financial settings to maintain strength and flexibility.”
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