NAB reports strong start to financial year

Home lending grows by 1%

NAB reports strong start to financial year

National Australia Bank (NAB) has reported a solid start to the financial year 2024, with unaudited statutory net profit at $1.7 billion and cash earnings reaching $1.8 billion for the first quarter.

The bank’s lending balances increased by 1%, driven by a 2% growth in Australian small to mid-size enterprise (SME) business lending and a 1% rise in home lending. Customer deposit balance grew by 2% across both business and private banking.

Despite a competitive environment, NAB maintained strong balance sheet settings, with the group common equity tier 1 (CET1) ratio exceeding the target range of 11% to 11.5%.

The bank reported a slight decline in cash earnings compared to the second half of 2023, attributed to a higher effective tax rate.

“We have started financial year 2024 well,” said Ross McEwan (pictured), group chief executive at National Australia Bank. “Our first quarter financial performance is sound, and there is good, targeted momentum across our bank.

“Cash earnings declined 3% compared with the second half of 2023 quarterly average but were broadly stable excluding the impact of a higher effective tax rate of 30%. This reflects a continued disciplined approach to growth during what remained a highly competitive period, combined with a focus on productivity to help offset cost pressures.”

According to McEwan, improving customer and colleague outcomes remains the bank’s key focus to deliver sustainable growth and improved shareholder returns.

“While economic growth has slowed, the Australian economy remains resilient, and the majority of our customers are faring well,” he said. “We continue to be optimistic about the outlook and our bank is in good shape as Andrew Irvine transitions to CEO over coming months.”

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