Investors Disappointed Over NAB Profits

Investors are not so pleased about the June quarter report from the National Australia Bank (NAB), where the bank says that it has remained flat in the last three months ending the quarter.

The NAB offers the lowest mortgage rate in the country in the hopes of boosting its market shares. When the bank handed down its report, which stands at $1.4 billion in profits, investors gave the NAB a mark down. Many were investing at least a marginal increase of $1.5 billion.

In a statement, the bank said that its unaudited income for the period was at $1.2 billion, which is actually lower than its average of $1.4 billion.

NAB recently invested $200 million in restructuring and overhauling some businesses in the UK. Mortgage lending, which has been slow in recent years, underwent a series of rate cuts since November.

The bank’s chief defended the report, saying that the results came because of ongoing challenges the global economy is facing. The uncertainty in the Euro zone and the US also contributed to the results, including slowdown in emerging countries.

The NAB said that it is positive the outlook will change as consumer confidence is building up again.

Meanwhile, many of NAB’s assets remain stable, but the bank did not disclose any specifics, nor did it include net interest margins in its report.

Investors, however, are reportedly concerned over NAB’s UK operations, as the company says it is going to continue with restructuring its businesses in the region.