National Australian Bank's (NAB) cash earnings for the quarter ending December stood at $1.1 billion which is flat as compared to the same period last year. The results announced are un-audited.

However, when compared to the previous quarter for the current year, the bank has grown by as much as 20 per cent.

The Melbourne-based bank's bad and doubtful debts for the December quarter were at $739 million. It is $202 million lower than the September quarter. This, as per Cameron Clyne, Executive Director, Managing Director and Group CEO of NAB, indicated that the crest of the debt cycle was over.

He also said that the position of the bank and the way it is managing things is appropriate, looking at the fragile situation of the Australian economy.

After the news, NAB's stock fell by 70 cents to $25.25. This reaction, experts believe, is the result of the comparison that investors have done with Westpac. It has performed better in terms of finances.

Meanwhile, the shareholders of NAB are expecting to get higher dividend once its all-cash offer to buy AXA Asia Pacific Holdings is approved. It is going to pay $13.29 billion.