UK and Irish banks boost Aussies

THE four British and Irish banks owned by National Australia Bank have lifted interim profits by 20% and helped the bank post a A$2.26bn (£830m) half-yearly surplus.

NAB, however, has conceded it has put plans for a major UK expansion on the back burner, and is instead focusing on 'organic' growth through its existing operations, and a new push into wealth management.

NAB owns the merging Clydesdale and Yorkshire banks, Northern Bank in Belfast and the National Irish Bank in Dublin. The four banks contributed A$476m to the interim result, up 21% from the A$395m posted the previous year. This equates to better than 20% of the bank's profit.

NAB courted Abbey National last year and has expressed interest in Alliance and Leicester, but its ability to move in Britain has been curtailed by the A$4bn in losses from its US mortgage business HomeSide, which it has now sold. NAB chief Frank Cicutto told a news conference that while he has not ruled out a UK acquisition, he was focused 'squarely' on growing existing businesses.

Overall, the NAB result was up 11% on the previous year. It also announced a further A$1bn share buyback as a result of its strong capital position.