The charge for bad and doubtful debts (B&DDs) was $528 million across the entire group, down 52 per cent from the prior corresponding period – and 37 per cent lower than the charge for the September 2013 half year.
Cash earnings in the NAB UK Commercial Real Estate (CRE) run-off portfolio improved in the half year to a loss of £7 million, compared to a £149 million loss in the March 2013 half year and a loss of £90 million in the September 2013 half year.
Commenting on the result, NAB chief executive Cameron Clyne said the recovery of the UK arm of the business is "tracking very well".
"It is still a challenge environment and you will see in this result that we have quite a significant uptick in conduct [related charges]," said Mr Clyne.
"The UK economy is improving, the GDP is growing, and house prices are increasing in Yorkshire and Scotland, but this has been a very troubled economy,"he said.
He pointed out that the UK had two recessions in the period between 2008 and 2013, and the UK has had a much slower recovery since the GFC than Australia.
"The statistic I often point to is the Australian economy is ... some 10 to 15 per cent bigger than it was in 2007. The UK economy is still 4 per cent smaller," said Mr Clyne.
"I don’t think you can expect a rapid recovery, but we are pleased to see the core business producing profits. Obviously the conduct issue remains an area of risk," he said.
Cash earnings for the NAB group were $3.15 billion, up $247 million or 8.5 per cent on the March 2013 half year.
