Powered by MOMENTUM MEDIA
subscribe to our newsletter

NAB reports lending growth

The big four bank has recorded a rise in lending across its mortgage, SME and Kiwi businesses in the last quarter.

NAB revealed a $1.6 billion unaudited statutory net profit in its third quarter trading update last week, up by 6 per cent from the same period in 2020, when the pandemic had taken hold.

Cash earnings of $1.7 billion had risen by 10.3 per cent from the prior corresponding period, supported by better credit impairment outcomes this year, NAB chief executive Ross McEwan said.

There had been a $112-million decrease in the provision for bad loans associated with COVID, reflecting improved asset quality across both housing and business lending, as well as higher house prices.

The ratio of loans more than 90 days overdue and gross impaired assets to gross loans and acceptances decreased by 10 basis points to 1.13 per cent, from 1.06 per cent in 3Q20.

Advertisement
Advertisement

NAB had also sold $1.5 billion in aviation loans in May, to de-risk the portfolio.

In the Australian business, housing lending rose by 2 per cent and SME business lending grew by 4.3 per cent, while the New Zealand business also saw its lending grow by 2.7 per cent.

Meanwhile, Mr McEwan acknowledged that while continued virus outbreaks and lockdowns are creating uncertainty and challenges for the bank’s customers, NAB remains optimistic about the long-term outlook.

“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,” the CEO said.

NAB recently secured Citigroup’s local consumer bank for $1.2 billion, after it bought neobank 86 400 earlier this year.

PROMOTED CONTENT


Mr McEwan stated the bank has a “clear focus” on its growth, with the acquisitions to help accelerate its expansion strategy.

NAB also noted that it had invested a further $100 million over the 2021 financial year in its branch transformation program, in addition to $60 million in FY20.

The bank opened four of its new-format branches in early July, after closing 72 branches between 1 January 2020 and 25 May 2021.

NAB told a parliamentary committee that it was unable to state “with confidence” how many branches would be left at the end of the year. As at 25 May, it had 548.

[Related: New AMP boss eyes broker channel]

NAB reports lending growth
NAB reports lending growth
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Sarah Simpkins

Sarah Simpkins is the news editor across Mortgage Business and The Adviser. 

Previously, she reported on banking, financial services and wealth for InvestorDaily and ifa.

You can contact her on This email address is being protected from spambots. You need JavaScript enabled to view it..

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.