National Australia Bank has reported a 63 percent jump in net profits to $4.22 billion, due to lower charges slapped on its nonperforming loans.

NAB, considered as Australia's largest business lender, said today in a disclosure the bank's cash earnings was higher by 19.3 percent to $4.58 billion, compared to the previous period's $3.84 billion.

Revenues, on the other hand, declined by 1.6 percent to $16.6 billion because costs linked to its personal banking strategies and volatility in global investment markets also went up.

NAB said total dividend for 2010 is also up to $1.52 cents per share, up six cents on the previous year.

NAB, whose shares have underperformed rivals' and the broad stock market over the past decade largely due to high-cost acquisitions, was in September forced to abandon a $12 billion bid for AXA Asia Pacific due to regulatory opposition.

Chief executive Cameron Clyne is confident the Australian economy would strengthen in the coming year, but the question of business confidence still hangs.

''We are seeing some early signs that demand is returning,'' Mr Clyne said of the sluggish demand for business loans.

He said the bank expected to see stronger business lending in fiscal year 2011.

He declined to comment on interest rates, but said intermediary funding and deposit costs were rising.