NAB profit increases on lending growth
National Australia Bank has lifted first-half cash earnings by 4.1 per cent to $3.38 billion, a result slightly ahead of an analyst’s expectations.
NAB CEO Ross McEwan. Photo by Jesse Marlow
Chief executive Ross McEwan said revenue was up 4.6 per cent on better pricing discipline and strong lending and deposit growth.
“The recent shift to a higher growth outlook provides greater scope to keep investing while continuing to deliver productivity benefits,” he said.
“This along with inflationary pressures has prompted a reset of our 2022 cost growth target to approximately 2 to 3 per cent to ensure we drive shareholder returns while balancing cost disciplines and growth opportunities.
Statutory net profit for the six months to March 31 was up 10.7 per cent to $3.55 billion, while operating revenue rose 4.6 per cent to $8.83 billion.
Net interest margin fell 11 basis points to 1.63 per cent.
The bank said this reflected competition pressures.
Expenses rose 2.6 per cent.
“We are producing better and faster experiences and getting the basics right more consistently. This has been achieved during a period of increased customer activity across all divisions of the bank, including the fastest growth in business lending since the GFC,” McEwan said.
The bank will pay a fully franked first-half dividend of 73 cents a share, up from 60 cents a share for the same period last year.
