SYDNEY, Aug. 15 (Xinhua) -- Melbourne-based National Australia Bank's third-quarter cash profit dipped by 3 percent, owing to a 21 percent jump in bad and doubtful debts.
The lender said on Monday that its cash profit for the three months to June 30 was 1.6 billion Australian dollars (1.22 billion U.S. dollar), with bad debt rising at 21 percent to 228 million Australian dollars (174 million U.S. dollar).
The rise in bad debts mirrors those at NAB's rivals such as Westpac, ANZ and Commonwealth Bank all announcing a rise in bad or doubtful debts in the last week.
"We continue to deliver on our strategy by getting the basics right, serving our customers better and keeping the balance sheet strong," NAB chief executive Andrew Thorburn said.
"The Australian and New Zealand economies remain resilient and continue to deliver growth amid heightened global uncertainty."
Expenses fell by 1 percent reflecting tight control of costs, owing to the bank's decision not to pass on the Reserve Bank of Australia's most recent rate cut in full to its home loan customers.
"These higher funding costs contributed to our decision to not pass on all of the most recent RBA interest rate cut to home loan borrowers. The decision reflects the responsibility we have to balance the needs of all stakeholders - borrowers, depositors and our 584,000 shareholders," Thorburn said.
NAB is one of the four largest financial institutions in Australia in terms of market capitalization and customers.
