Update - Unauthorised Dealing

RNS Number:3594U
National Australia Bank Ld
18 January 2004


                                              Group Corporate Affairs



                                              National Australia
                                              Bank Limited
                                              ABN 12004044937

                                              500 Bourke Street
ASX Announcement                              Melbourne
                                              Victoria  3000
                                              Australia


                      Melbourne, Monday 19th January  2004


Update on unauthorised foreign currency trading investigations

Since its initial announcement on 13 January 2004, the National Australia Bank
has progressed its internal investigations into unauthorised foreign currency 
options trading.

Our detailed work on the unauthorised trading has confirmed that the pre-tax
loss arising from the removal of fictitious trades from the foreign currency 
options portfolio is A$185 million - slightly above our original
estimate of A$180 million.

The Chief Executive of the National, Mr Frank Cicutto, said foreign currency
options will continue to be a part of our Markets business.

"In view of the unauthorised activity that has occurred in this portfolio, the
National is undertaking a market revaluation of the remaining portfolio to 
ensure it conforms with our policies,"  Mr Cicutto said.

"Our initial view indicates that this revaluation will lead to additional
losses. Based on our work to date, there is a very low probability that the 
total losses will be as high as market speculation of A$600 million.
We expect to provide a further update on this matter by the end of the week."

The Chairman of the National, Mr Charles Allen, said the Board of Directors had
been updated on the investigations.

"Following the outcomes of the investigations we will take whatever action is
necessary to ensure that investors, customers and staff have full confidence in 
the National," Mr Allen said.

For further information, please contact:

Robert Hadler
Group Corporate Affairs
03 8641 3876
0404 805 675

or visit www.nabgroup.com



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

STRFGGMMFRKGDZZ