Melbourne-based National Australia Bank dropped its first half net profit to 21.4 per cent due to the bank's exposure to volatility on financial instruments.

The bank's net profit slips down to $2.095 billion for the past six months to March 31 from $2.664 billion in the corresponding quarter. However, there was a net profit recovery from the loss of $75 million during the second half of last year.

Its wealth division and business bank increased cash earnings from 8.2 per cent to $2.193 billion. The bank also said this was due to the improvements from its debt charge.

NAB announced its interim dividend of 74 cents per share while its dividend payout ratio increased slightly to 71.8 per cent over the year.

Cash earnings per share slumped to $1.03 from $1.083 a year ago.

Cameron Cline, NAB executive, told the media that the bank will consider its options on its blocked takeover bid to AXA Asia Pacific Holdings.

"We are not ruling options in or out at the moment," Mr. Clyne said/

He added that the bank's profit growth from now would start from the growth in business lending, and that many businesses are starting to become confident in investing.

"I think the next wave of credit growth is really going to be around business," he said.

Mr. Clyde said there is a potential for NAB's infrastructure projects and it is the additional lending business as it will be another area for growth.

"It will come, but it's a question of will it come in the back half of 2010 or in 2011," he said, in reference to infrastructure lending growth.