National Australia Posts Record Second-Half Profit

National Australia Bank Ltd., the country's biggest, posted record second-half profit as lending increased in an economy that's entered its 16th consecutive year of expansion.

Net income climbed 1.8 percent to A$2.44 billion ($2.26 billion) in the six months ended Sept. 30 from a year earlier, the company said in a statement today. It also tapped demand for loans in the U.K., where it earns almost 20 percent of profit.

National Australia is the third of the country's banks to post record earnings in the past two weeks, dodging the subprime mortgage crisis that cost U.S. financial institutions more than $40 billion. Australian banks are increasing lending at the fastest pace in 18 years as the nation benefits from the longest run of jobs growth since 1995.

``The numbers look good across the board, and I don't see any obvious red flags,'' said Troy Angus, who helps manage A$4 billion at Paradice Investment Management Ltd., including National Australia Bank shares, in Sydney. ``We liked the bank's confidence in keeping costs lower.''

Chief Executive Officer John Stewart declared a second-half dividend of 95 cents a share, up from 84 cents a year earlier, and forecast costs to remain within inflation to 2010. Annual profit of A$4.58 billion beat the A$4.36 billion median estimate of 15 analysts surveyed by Bloomberg.
microcapeducation.com