NAB third-quarter profit jumps to $1.8b

National Australia Bank has recorded quarterly cash earnings of $1.8 billion, an increase of 6 per cent on the same quarter last year.

The bank’s chief executive Ross McEwan said the quarterly results, released on Tuesday morning, were “pleasing” and commented that the majority of their customers are well-placed to manage economic challenges such as inflation and rising interest rates.

NAB chief executive Ross McEwan said approximately 70 per cent of customer home loan repayments were ahead of schedule.

Lending and deposit momentum continued, up 2 per cent and 4 per cent respectively during the June quarter, the bank said.

NAB chief executive Ross McEwan described the quarterly result as “pleasing” and highlighted the bank’s execution of its strategy including completing the acquisition of Citigroup’s Australian consumer business.

“As the economy changes, continued low unemployment and healthy household and business balance sheets are helping mitigate the impacts of higher inflation and higher interest rates. The majority of our customers are well-placed to manage these challenges, including approximately 70 per cent of customer home loan repayments ahead of schedule,” he said.

“For those customers who need our support, we have a range of options available.”

The bank’s net interest margin was slightly lower, though NAB said excluding markets and treasury income the margin was up slightly, “reflecting the benefit of a rising interest rate environment, partly offset by home lending competition and higher wholesale funding costs”.

McEwan said the business was in good shape for the evolving economic environment.

“We have a clear strategy and executing this with discipline is our key priority. We will continue to focus on getting the basics right, managing our bank safely and improving customer and colleague outcomes to deliver sustainable growth and improved shareholder returns.”

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