National Australia Bank (NAB) today warned today first-half earnings would fall as much as 10 per cent due to currency movements and British pension costs.
The profit warning comes as the bank, which owns National Irish Bank (NIB) and Northern Bank, struggles to rebuild its reputation following the forex trading scandal and a string of costly mistakes.
National said it expected cash earnings before one-off items for the six months to March 2004 to come in 8-10 per cent lower than in the same period last year.
Cash earnings excludes funds management writedowns and adds back amortisation of goodwill and one-offs.
The bank, which earns a quarter of its profits in Britain, has been hit by the Australian dollar's appreciation against the pound and higher European pensions costs, adding to the fall-out from the trading scandal.
"This has been a difficult period for the group. Some of these impacts will flow through to the second half," chief financial officer Mr Richard McKinnon, who announced plans for an early retirement two weeks ago, said in a statement.
Shares in National - which are already underperforming rival banks, dived 3.8 per cent to a 10-week low of A$29.89.
AFP