Australia's NAB posts profit dip, investors cheer margin stability
(Reuters) -National Australia Bank, the country's No. 3 lender by total loans, reported on Friday that profit fell in the June quarter as inflation pushed up costs and stoked competition, but said that a measure of core operating margins held steady, sending its shares higher. The company, which is Australia's top business lender as well as a top-tier mortgage provider, warned of a deterioration in its business banking portfolio where "non-performing" loans reached the highest in at least two years. But it said in a limited third-quarter trading update that its net interest margin (NIM) - a closely-watched measure of bank performance which compares interest payments received on loans minus interest paid out to deposit holders - had held steady since the first two quarters.