In a statement to the market on Thursday, NAB said it had achieved an unaudited statutory net profit of $1.65 billion for the third quarter of its financial year, and unaudited cash earnings of $1.7 billion, a 10.3 per cent increase on the same quarter last year.
Cash earnings were essentially flat when compared to the quarterly average for the first half of NAB’s 2021 financial year, with revenue declining 1 per cent as the bank’s Markets and Treasury income was “challenged by limited trading opportunities” given the impacts of monetary policy settings.
However NAB chief executive Ross McEwan said improving credit impairment outcomes compared to last year, combined with strong momentum in housing and business lending had helped the bank in the past three months.
The proportion of NAB’s loans that were 90 days or more in arrears had dropped to 1.13 per cent from 1.23 per cent in the previous quarter, but was still significantly above pre-pandemic rates.
“Continued COVID-19 outbreaks and lockdowns are creating uncertainty and challenges for some of our customers. However, we remain optimistic about the long-term outlook for Australia and New Zealand,” Mr McEwan said.
“The strong economic momentum leading into this period, ongoing government support and customers’ relatively healthy starting positions give us confidence that once restrictions are eased, the economy will again bounce back.”
Mr McEwan added that the acquisition of neobank 86 400, combined with NAB’s recently announced purchase of Citi’s consumer banking division, would “help accelerate our growth strategy”.
“We have a clear focus on where and how we will continue to grow,” he said.
The bank flagged it would invest $100 million over the 2021 year in revitalising its branch network, including the addition of meeting spaces and digital self-service bars to “adapt to the changing ways customers do their banking”.
