Unaudited cash earnings increased by seven per cent from the corresponding 2012 period, up to $1.55 billion.
This result was also around two per cent higher than the quarterly average of the September 2013 half-year result.
Revenue increased around one per cent on a cash earnings basis from the previous quarter.
Lending balances also increased over the period, but this was partly offset by a lower customer margin.
According to NAB, net interest margin was further impacted by “higher holdings of liquid assets and the effect of falling interest rates on capital".
Expenses rose by three per cent from the previous quarter due to inflation-related salary increases, normalisation of performance-based incentives and increased depreciation and amortisation charges.
The charge for bad and doubtful debts fell by 23 per cent from the September quarter, down to $324 million as result of lower charges in Australian banking business and the UK businesses.
NAB also raised $10.1 billion in wholesale funding, with around $1.6 billion of secured funding.
Mr Clyne said he was particularly pleased with the improvement in the performance of UK Banking and the NAB UK Commercial Real Estate run-off portfolio.
“Both continue to benefit from the restructure we undertook in 2012 and the recovery of the UK economy,” said Mr Clyne.
He also said the bank has continued to develop initiatives over the quarter that increase the time frontline employees spend with customers.
“One example during the period was the centralisation of middle-office operations of 60 business banking centres into seven business credit fulfilment centres, enabling our business bankers to spend more time with customers,” he said.
