The big four bank released its unaudited results for the June quarter 2017 on Friday, 11 August, revealing that revenue was up by 2 per cent on the prior quarter as a result of its most recent rate hikes (and offset by lower Customer Risk Management and NAB Risk Management income).
In March, the bank was one of many lenders to lift its standard variable mortgage rates for both owner-occupiers and investors, citing elevated funding costs.
The bank also reported that bad and doubtful debt charges fell by 12 per cent to $173 million in the June quarter, reflecting improved asset quality trends (and non-repeat of the collective provision overlay for commercial real estate raised in the March 2017 half year).
“This is a strong result which reflects continued discipline and focus,” said NAB Group CEO Andrew Thorburn.
“Cash earnings and revenue are both higher, asset quality has improved and our capital and funding positions remain sound.”
Mr Thorburn added: “The Australian and New Zealand economies remain resilient, with solid growth supported by strong population growth and low unemployment. Australian business conditions rose again in the June quarter to their highest level since early 2008, with broad-based strength across industries.
“However, the household sector faces some challenges with high levels of household debt, muted wages growth and subdued consumer sentiment.
“Against this backdrop, we remain focused on executing against our strategic priorities to ensure we can grow in a sustainable way while managing our business responsibly for all stakeholders.”
Unaudited cash earnings came in at $1.7 billion, up by 5 per cent on the same period last year, while unaudited statutory net profit was around $1.6 billion.
[Related: Major bank sees mortgages portfolio reach $320bn ]
Annie Kane is the editor of Mortgage Business.
As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also a regular contributor to the Mortgage Business Uncut podcast.
Before joining Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.