5 Nov 2012

BNZ a shining light for NAB

6:59 am on 5 November 2012

The Bank of New Zealand was one of the few shining lights in a downbeat full-year result for the National Australia Bank last week.

NAB reported a fall of 22% in its annual net profit to just over $A4 billion. But BNZ lifted its full year profit by 21% to $NZ741 million.

The major culprit was continuing losses in its operations in Britain, where the Clydesdale Bank has been knocked for six by recession.

Charges for bad and doubtful debts rose more than 40%, while its net interest margin fell 11 basis points.

Radio New Zealand's Sydney correspondent says NAB is the worst performer of Australia's big four banks on the sharemarket this year, trailing Commonwealth Bank, Westpac and ANZ.