SYDNEY, Oct 28 (Reuters) - National Australia Bank NAB.AX , the country's No.1 lender by assets, on Wednesday posted a 15.5 percent rise in annual profit and confirmed it would sell 80 percent of its insurance unit to Japan's Nippon Life Insurance Co for A$2.4 billion ($1.7 billion).
NAB also announced it would spin off and sell its under-performing UK operations, Clydesdale Bank and Yorkshire Bank, through an initial public offering early in 2016.
Annual cash profit, which excludes one-offs and non-cash accounting items, rose to A$5.84 billion for the 12 months to Sept. 30 from A$5.2 billion a year ago and A$6.3 billion consensus of five analysts polled by Reuters. Earnings missed expectations due to higher charges related to its UK business.
NAB, which has long trailed its three main rivals on earnings growth and shareholder returns, confirmed a Reuters report from Tuesday about selling 80 percent stake in its life insurance business to improve returns in its wealth business.
($1 = 1.3910 Australian dollars)