Expenses ahead of revenue, margins declining at NAB 11 August 2015 3:28PM John Kavanagh National Australia Bank has reported an unaudited cash profit of A$1.75 billion for the three months to June - up nine per cent on the previous corresponding period.Revenue was up by four per cent but expenses were also up four per cent. Excluding proceeds of a legal settlement and other items, revenue was up two per cent. The net interest margin declined.The charge for bad and doubtful debts was down 15 per cent on the previous corresponding period to $193 million.The ratio of loans past due 90 days or more to gross loans and acceptances was 0.78 per cent, compared with 0.85 per cent in March.The bank's common equity tier one ratio rose 107 basis points during the quarter to 9.94 per cent. This improvement reflects the impact of the bank's $5.5 billion rights issue in May.The bank has increased its provision in support of conduct costs at Clydesdale Bank in the UK. Earlier in the year NAB provided £1.7 billion in respect of the mis-selling of payment protection insurance but it expects to increase that by £290 million to £420 million.