RNS Number:6590U
National Australia Bank Ld
26 January 2004


                                                     Group Corporate Affairs

                                                     National Australia
                                                     Bank Limited
                                                     ABN 12004044937

                                                     500 Bourke Street

            ASX Announcement                         Melbourne
                                                     Victoria  3000
                                                     Australia


                     Melbourne, Tuesday 27th January  2004

Update on unauthorised foreign currency options trading

Following a detailed assessment, the National Australia Bank has announced a
total pre-tax loss of A$360 million arising from unauthorised foreign currency 
options trading.

The total pre-tax loss includes A$185 million announced last week and an
additional A$175 million from revaluation of the trading book. This will result 
in a post-tax loss of A$252 million.

The Chief Executive of the National, Mr Frank Cicutto, said a detailed internal
revaluation, and a review of that revaluation by the National's external 
auditor, had confirmed the losses arising from the unauthorised
foreign currency options trading.

"We have worked as quickly as possible to identify all of the losses arising
from the foreign currency options trading accurately," he said. "We will ensure 
that our ongoing position will be managed in a prudent and conservative manner.

"The foreign currency traders exploited weaknesses in our internal procedures.
We have identified those weaknesses and closed them. We are conducting a 
comprehensive investigation into the matter and we will take
whatever other action is necessary."

Mr Cicutto also said the National expects to pay a full year dividend in line
with market expectations and that the dividend will be fully franked in the 
first half.

The Chairman of the National, Mr Charles Allen, said the Board of Directors are
closely monitoring the investigations into the unauthorised foreign currency 
options trading and will ensure a comprehensive and transparent assessment.

"We will provide the fullest possible account of the outcomes of the internal
investigations when they are completed

towards the end of February and ensure full responsibility is identified for the
unauthorised foreign currency options trading," he said.

For further information please contact:

Robert Hadler                                Brandon Phillips
General Manager                              Group Manager
Group Corporate Affairs                      Group Corporate Relations

03 8641 3876 work                            03 8641 3857 work
0404 805 675 mobile                          0419 369 058 mobile

or visit www.nabgroup.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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