National Australia Bank (NAB), the nation's top lender, on Tuesday reported a third quarter profit of around 1.2 billion AU dollars (1.26 billion U.S. dollars) as operating conditions remained difficult.
NAB's June quarter cash earnings were steady at around 1.4 billion AU dollars (1.47 billion U.S. dollars), compared with the level in the previous quarter, but below analyst expectations of 1. 5 billion AU dollars (1.58 billion U.S. dollars).
The bank said the main difference between net profit and cash earnings was charges relating to the restructure of its UK operations.
NAB said its revenue for the June quarter was down 1 percent, compared to the March quarter, reflecting higher funding costs and weaker financial markets. "This quarter's result is set against a backdrop of ongoing challenges in the global economy with continued uncertainty in the euro-zone and the United States, volatility in global financial markets and slowing growth in the big emerging economies," NAB Chief Executive Officer Cameron Clyne said in a statement Tuesday. "Although subdued business and consumer confidence continue to affect the Australian economy, we remain positive about the outlook."
NAB shares were down 41 AU cents, or 1.64 percent, at 24.64 AU dollars at 1228 local time on Tuesday.