Australia's largest bank National Australia Bank, which owns National Irish Bank here, has warned that its full-year profit was likely to be at the lower end of expectations due difficult market conditions and a fall in returns from its wealth management business.
'The full year performance is expected to reflect market expectations at the low end of the target range,' NAB chief financial officer Richard McKinnon said. NAB had originally forecast 12% earnings growth for 2003 but McKinnon said the figure was now likely to be between 8% and 11%.
The bank said the value of its wealth management business was likely to be written down by as much as $250m Australian after being hit by poorly-performing equity markets and declining customer numbers.
'Weak investor sentiment has impacted fee income in the investments business,' the bank said. 'Movement in equity markets over the first half is expected to result in a revaluation loss for the half of not more than $250m.'
It said trading conditions in Europe had been difficult, with intense price competition, a slowing British economy and a complex regulatory environment.
McKinnon said the bank had achieved strong growth in its Australian and New Zealand retail operations and sound asset quality across the group.
