National Australia Bank reported its first quarter results today.  Though, the profit reported by the bank is in line with the company guidance, but it is far behind when compared with the results of the rivals like Westpac and Commonwealth Bank of Australia who posted a better first quarter profit. The first quarter profit for National Australia Bank remained almost same comparing to the same period last year.

The bank has failed to gain the boost from the recovery in economic conditions as Westpac and the CBA earlier this month stunned the market with strong growth in all sectors.

National, the fourth largest bank of Australia by market capitalization, reported a net profit of A$1.1 billion for the first quarter of the fiscal, increasing by 20% when compared with the fourth quarter of FY 2009 but remained almost same when compared YOY to the first quarter of FY 2009. The bank posted almost same revenue and net interest margin in the first quarter compared to the same quarter last fiscal.  

On the other hand Westpac and Commonwealth Bank both reported an increase in their quarterly earnings of 33% and 54% respectively.

Cameron Clyne, NAB chief executive officer, said, “The earnings had taken a hit because the personal banking division had lost revenue due to a combination of lower fees, higher whole sale funding costs and competition in the retail deposit market.”