NAB chief executive Ross McEwan said bank customers were “faring well”.Credit:Peter Rae
In the first quarter of 2024,loans for which customers were three months behind on repayments made up 0.75 per cent of the bank’s portfolio – in line with the previous quarter. Improved performance in the New Zealand business lending portfolio offset an increase in Australian homeowners in arrears.
“While economic growth has slowed,the Australian economy remains resilient and the majority of our customers are faring well,” McEwan 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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NAB said its cash earnings,before tax and credit impairment charges,were “broadly stable” when compared to the second half of the 2023 financial year,down only 3 per cent.
The bank’s revenue increased 1 per cent and its net interest margin – a core measure of profitability – was “slightly higher”,but NAB did not disclose by how much. Expenses rose 3 per cent,but analysts seemed unfazed,noting NAB has had a history of higher costs in its first quarter that subside over the year.
McEwan said small-to-medium enterprise business lending grew 2 per cent,while home loan lending rose 1 per cent.