RNS Number:4071T
National Australia Bank Ld
18 December 2003


                                                         Group Corporate Affairs

                                                         National Australia
                                                         Bank Limited
                                                         ABN 12004044937

                                                         500 Bourke Street
  ASX Announcement                                       Melbourne
                                                         Victoria  3000
                                                         Australia




                                          Melbourne, Thursday 18th December 2003



  National comfortable with its accounting treatment of European pension funds


The National Australia Bank is comfortable with its accounting treatment of
defined benefit pension funds in Europe, Chief Financial Officer, Mr Richard 
McKinnon, said.

Mr McKinnon was responding to an article on page one of the Australian Financial
Review (18 December 2003)that the National, and other Australian companies, may 
be required by the Australian Securities and Investments Commission to recognize
in its accounts shortfalls in staff superannuation funds.

"There are no shortfalls in our Australian or New Zealand defined contribution
staff superannuation schemes and there has been clear and comprehensive 
disclosure about the current accounting deficits in our European defined benefit
pension funds," Mr McKinnon said. "All of our disclosures are in line with
current accounting standards."

"The National fully disclosed higher European pension costs in a statement to
the Australian Stock Exchange on 7 October 2003, and Note 48 of the financial 
statements in our 2003 annual report fully outlines our superannuation 
commitments."

Mr McKinnon said the National has no obligation to make payments in respect of
any deficits over and above its annual contribution to these plans unless 
required by the applicable statutory minimum funding requirements.

"An interim actuarial review at 30 June 2003 confirmed that our European staff
pension funds exceed the minimum funding requirements set by legislation and are
actually in surplus on a best estimates basis," Mr McKinnon said.

"Following the review, the National's defined benefit pension funds in Europe
have been closed to new members and defined contribution schemes will be opened 
for new members from 1 January 2004."



For further information, please contact:


Brandon Phillips
Group Corporate Affairs
Melbourne
Tel:  03 8641 3857
Mob: 0419 369 058


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