National Australia Bank’s Q3 cash earnings rise as lower impairments offset slower home lending
It posted cash earnings of A$1.83 billion (US$1.30 billion) for the three months ended Jun 30
National Australia Bank (NAB) reported a modest rise in its third-quarter cash earnings on August 17, 2022, at A$1.83 billion (US$1.30 billion), slightly above the average of the prior two quarters, excluding one-off items. The increase was primarily due to lower credit impairment charges and growth in lending volume. However, NAB noted a 15% decline in Australian home loan applications in the third quarter compared to the second quarter, indicating subdued demand amid Australian tax reforms aimed at enhancing housing affordability.
CEO Andrew Irvine attributed the challenges to the Middle East conflict, higher domestic interest rates, and recent tax changes in the Federal Budget. The bank's net interest margin for the quarter stood at 1.79%. NAB's common equity tier 1 ratio, a key metric of financial strength, dipped to 11.93% in the third quarter, down from 12.14% the previous year.
Despite the challenges, NAB remains committed to achieving productivity savings of over A$450 million for FY26 and keeping operating expense growth below the 4.6% increase seen in FY25.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
