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Homeside hurts NAB’s profits

National Australia Bank (NAB) has reported a fall in profits of 36% for the year, with the drop attributed primarily to hedging blunders at its US mortgage subsidiary Homeside in September.

The bank reported net profits of $1.07 billion from $1.66 billion in 2000. Frank Cicutto, managing director and chief executive of NAB, said the result has been affected significantly by the sale of Michigan National and the writedown of Homeside. But he stressed that group profit before these ‘significant items’ increased 13% to $1.87 billion on a cash basis.

NAB successfully sold Michigan

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