Australia's largest bank National Australia Bank Ltd., Reported falling profits in the first quarter by 0.9% due to growth in the volume of bad loans in the economy. Net income fell to 2.66 billion Australian dollars (1.9 billion U.S. dollars), against 2.69 billion in the corresponding period last year. Cash earnings fell by 9.4% due to increase in the proportion of troubled loans. "The drop in disposable income reflects the stringent conditions in the economy, and the prospects remain bleak," - said Cameron Klein, director general of the bank. "We worked on the restoration of income, reducing costs, but increase in the proportion of doubtful loans and rising costs of attracting additional funding has caused the fall of profits", - he added. Klein took office on 1 January this year. Currently, the bank reduces the state of workers and reduces the volume of dividend payments to reduce costs, and kept in a prolonged recession.
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