RNS Number:2624U
National Australia Bank Ld
15 January 2004


                                           Group Corporate Affairs

                                           National Australia
                                           Bank Limited
                                           ABN 12004044937

                                           500 Bourke Street
             Media Release                 Melbourne
                                           Victoria  3000
                                           Australia





                     Melbourne, Thursday 15th January 2004



National's response to unauthorised foreign currency trading



The Chief Executive Officer of the National Australia Bank, Mr Frank Cicutto, in
conjunction with the Risk Committee of the Board, has initiated a full 
investigation into unauthorised foreign currency trading and appointed 
independent experts from PricewaterhouseCoopers to assist the National in this 
investigation.

"Since this issue came to light on Tuesday, a structured process to review and
resolve all issues arising from the unauthorised foreign currency trading has 
been in place,"   Mr Cicutto said.

"We immediately advised the Australian Stock Exchange and fulfilled our
continuous disclosure obligations when we became aware of the unauthorised 
trading and the losses arising from this trading.

"We advised all relevant regulatory authorities and sent a formal reference to
the Australian Federal Police so that they can evaluate whether any criminal 
charges should be brought.

"We suspended the four members of the foreign currency options trading desk
involved in this matter pending the outcomes of the internal investigation and 
external inquiries and we took appropriate steps to manage the position.

"We have subsequently commissioned a comprehensive investigation of what
happened and how it occurred so that we can review and enhance our processes to 
ensure that this does not happen again."

The Chairman of the National Australia Bank, Mr Charles Allen, said the Board of
Directors were fully supportive of the actions taken by the management team.

"The Board of Directors will closely monitor the investigation, and the Risk
Committee, chaired by Mr Graham Kraehe, will receive regular management updates 
and reports from PricewaterhouseCoopers, "  Mr Allen said.

"We will continue to keep the market informed as appropriate and, at this early
stage, we expect to release the outcomes of the investigation by the end of 
February."



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
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