CLYDESDALE Bank was again one of the better-performing parts of its competition-hit National Australia Bank parent during the six months to end-March.

The Glasgow-based bank raised interim pre-tax profits by 15.3% to #72.5m, on the back of a 14% jump in fees, commissions and other non-interest income and a 10.6% advance in net interest earnings.

But the interim after-tax profits of NAB's Australian operations fell from A$665m (#257m) to A$634m (#245m) before exceptionals. Competition in the Australian financial services market has been fierce.

NAB's managing director, Don Argus, warned yesterday of the additional uncertainty created by the Asian financial crisis.

He said: ''The uncertainty created by Asia will impact on other major economies, as well as continuing to depress immediate prospects in our region.''

Group operating profit after tax but before exceptionals fell from A$1139m (#440m) in the first half of the previous financial year to A$1109m (#429m), even though Australian dollar weakness was beneficial to the translation of its sterling, US dollar, and Irish punt profits. But, before tax and doubtful debt charges, underlying group profits were up 4.7%.

Interim after-tax profits from NAB's Michigan National subsidiary in the US were up 7.6% at #38m.

Clydesdale chief executive Fred Goodwin, who is in Australia masterminding a group-wide reorganisation and ''streamlining'' NAB's Melbourne head office, said of the Scottish bank's results: ''There has been quite a substantial growth in the business, which is what is mainly driving things. We have tried to keep our foot on the costs as far as possible as well.

''It is quite a solid result from the Clydesdale.''

Goodwin highlighted the increased focus on non-interest income whereby, for example, customers are charged an annual fee for a bank account but earn a better rate of interest on their money.

Clydesdale's percentage profits rise was not quite as good as that of NAB's European operations as a whole. The Scottish bank's after-tax profits were up 17.4% at #49.3m.

But, taking in Yorkshire Bank, Northern Bank, National Irish Bank, NAB's wholesale bank in London and the relevant parts of National Australia Life, NAB's Glasgow-based European chief executive, Ross Pinney, said the rise in overall after-tax profits in his domain was 20.5% before exceptionals.

Eire's National Irish led the way with a 61.5% increase in its Australian dollar-translated after-tax profits, though a substantial chunk of this was the result of exchange rate fluctuations. On a comparable basis, Yorkshire Bank was up 54.1% and Clydesdale advanced 37.9%. Northern Irish subsidiary Northern Bank was only 27.1% ahead.

Goodwin quashed speculation about his immediate future role within NAB by saying he would be back in the UK permanently from the end of June.

Goodwin has been working from group headquarters in Melbourne since the end of January and speculation has been rife that he might end up as Argus's successor.

Before Goodwin left, a Clydesdale Bank spokeswoman said he would probably be working out of Melbourne for a ''couple of months'' but his secondment has proved much longer.

Goodwin, who joined Clydesdale as deputy chief executive three years ago from accountancy firm Touche Ross, was appointed chief executive of Yorkshire Bank only weeks before he left for the Australian secondment and the timing seemed curious.

One Scottish fund manager speculated earlier this week that Goodwin could yet end up at Royal Bank of Scotland, if Royal chief executive George Mathewson moved ''upstairs'' when Lord Younger vacates the chairman's seat, probably in 2000.

But Sir Iain Vallance and Sir Angus Grossart, non-executive directors of Royal, are also seen by some as potential future chairmen.

Asked about the speculation about him ultimately moving to Melbourne or joining Royal Bank, Goodwin said: ''It is news to me. If either of those two opportunities presented themselves, who knows what someone would do.

''On the basis they haven't, I haven't devoted any time to thinking about it.''

Goodwin, nicknamed Fred the Shred, has been reorganising other parts of NAB along the lines of Clydesdale.

He has been trying to separate ''manufacturing'' operations from retail. One previous example of this was the creation of a centre in Glasgow to handle mortgage processing for all NAB's European banks, an activity previously split between the separate banks and their branches.