Business Description:
National Australia Bank Limited (NAB) is a financial services group that provides a comprehensive and integrated range of banking and financial services including wealth management throughout Australia, New Zealand, Asia, parts of the United Kingdom and a small US exposure.

Strategy Analysis:
NAB's overriding strategic priority is to expand, develop and leverage its Australian businesses, whilst extracting value from the off-shore operations where appropriate. The focus is squarely on NAB's profitable Australian franchises, where earnings and ROE are strong, and importantly, there remains further long-term upside potential and growth opportunities across the key business bank, retail bank and wealth management businesses. NAB currently generates more than 80% of its cash earnings from its Australian businesses whilst they account for 60% of the group's risk weighted assets. National Australia Bank reported NPAT up 23.6% to $5.22bn for the year ended 30 September 2011. In the September 2011 year there was a reduction in statutory profit of $266m ($181m after tax) from fair value and hedge ineffectiveness. This was largely due to the change in the fair value of derivatives used to manage long-term funding from movements in spreads between Australian and overseas interest rates. Revenues from ordinary activities were $16.84bn, down 1% from last year. Diluted EPS was 231.5 cents compared to 190.6 cents last year. Net operating cash flow was $9.17bn compared to $5.87bn last year. The final dividend declared was 88 cents, taking the full year dividend to 172 cents compared with 152 cents last year. Looking ahead, recovery in coal exports from supply disruptions and the boom in mining investment are expected to provide a substantial amount of economic growth over 2012, even if other areas of the "patchwork" economy remain subdued.