Home loans helped NAB increase net quarterly profit 6% to $1.65 billion

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Home lending helped the National Australia Bank increas cash profit 6% to $1.65 billion in the first quarter of its financial year.

Net profit was $1.8 billion compared to $1.4 billion.

CEO Andrew Thorburn says Australian home lending continues to generate strong growth.

However, the bank has seen intense competition for business lending.

The bank continues to make progress in dealing with under-performing assets.

Following on from the IPO of a 31.8% stake in Great Western Bank in October last year, the NAB sold an additional £1.2 billion parcel of higher risk loans from its UK CRE portfolio in December. This reduced the portfolio to about £800 million compared to the original balance of £5.6 billion in 2012.

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