National Australia Bank's recently appointed chief executive has said there no plans at the moment to sell its British and Irish banks, including National Irish Bank.
John Stewart was speaking after underlying earnings at its UK and Irish operations slumped 37% due to higher pension fund expenses and currency movements. He said it could take up to three years to see an improvement in the British and Irish operations.
NAB last night reported 'disappointing' interim earnings which reflected the impact of a costly rogue foreign exchange trading scandal. It warned that it could take two years to turn the company around.
Still reeling from the trading scandal which he admitted had been 'distracting', Mr Stewart said the full extent of the damage was yet to be felt and he forecast 'flat at best' earnings for the second half.
Australia's biggest bank posted a headline 16% rise in net profits to A$2.2 billion for the six months to March but its preferred measure of profitability, net cash profit, was down 8.7%.
A A$360m foreign currency trading scandal three months ago and a poor performance in the bank's European operations accounted for much of its difficulties.
The unauthorised trading led to the sacking or resignation of NAB's chairman, chief executive, chief financial officer and the four rogue traders.
The bank was severely reprimanded by the industry regulator for lax risk management and ordered to adhere to stricter compliance procedures.
