National Australia Bank’s profits jumped by 17 per cent to $4.1 billion in its first half and shareholders will receive higher dividends, after the lender’s bottom line benefited from rising interest rates and low bad debts.
NAB kicked off a round of half-year profit results from the major banks on Thursday, delivering strong growth in cash earnings to $4.1 billion for the March half, underpinned by 19 per cent growth in the bank’s revenue.Credit:Chief executive Ross McEwan said there were encouraging signs inflation and interest rates in Australia were peaking, and the nation would avoid a “pronounced economic correction.
With the economy slowing, banks are expecting a rise in customers in financial stress, and McEwan said NAB was ready to support struggling customers. McEwan said NAB had benefited from its decision to focus on high-returning sectors - NAB is the largest lender to small businesses in the country, and it has played down its involvement in the stiff competition in mortgages.The bank’s presentation highlighted a slowdown in new mortgage lending and a surge in customers refinancing, which has led to “intense price competition.”
NAB chief executive Ross McEwan said there were encouraging signs inflation and interest rates in Australia were peaking, and the nation would avoid a “pronounced economic correction.”NAB said its total loans grew 6.2 per cent in the half and deposits were up 8.4 per cent, helped in part by its purchase of Citi’s Australian retail bank last year.
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