“Competition in home lending has been as tight as I’ve seen in my time in Australian banking,” he said. “We expect 2024 will remain challenging,reflecting slower economic growth,ongoing higher inflation and continued competition.”

Despite some worried business owners,McEwan said business conditions were “above average” and that he remained optimistic about a recovery in Australia’s economic growth.

“With demand for our natural resources and strong employment and migration,Australia’s
economy is well positioned to improve in the second half of next year,” he said.

NAB also fielded questions from shareholders about its climate policy.

Despite the board recommending shareholders vote against a resolution asking the bank to expand the application of its policy to stop financing companies lacking an emission reduction plan by 2025,about 28 per cent of proxy votes were in favour.

While NAB’s policy currently applies to upstream oil and gas,metallurgical coal mining and coal-fired power generation companies,the shareholder-initiated resolution called for the commitment to be extended to fossil fuel infrastructure and service companies.

Market Forces researcher Kyle Robertson said it was “completely reasonable” for all fossil fuel companies to have a credible emissions reduction plan by 2025,and that the results of the vote on the resolution needed to be taken seriously.

“If the board received a 28 per cent strike against remuneration,it would be doing everything in its power to address shareholders’ needs,” he said.

Chronican said NAB acknowledged climate change was a significant risk to the planet and that while it was “reasonable to take the necessary time” to implement policy changes,the board recognised the need to further develop its approach in relation to transition plans and assessments.

NAB also received questions from Tiwi Islanders about the bank’s decision to finance Santos,which is looking to develop a gas project off the coast of the Tiwi Islands,and whether the bank would commit to meeting with Tiwi people following a commitment from Westpac’s chief executive Peter King to do so on Thursday.

McEwan said it was “absolutely appropriate” to engage in conversation with Indigenous people and Islanders when banks were involved in major developments such as those proposed by Santos. “We’re very happy to have those conversations,” he said.

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