NATIONAL Australia bank, the parent of National Irish Bank and Northern Bank, has announced an increase of 2.6 per cent in third quarter profits to Aus$505 million (£247 million).

The group achieved a "pleasing turn around in performance" in Ireland and Britain according to Mr Don Argus, group managing director.

The results of the Irish operations are not due to be published until next week.

The third quarter results bring the operating profit for the first nine months of the year to Aus$1.5 billion (£744 million).