National Australia Bank’s first quarter profit rises 9% on strong lending

A National Australia Bank (NAB) sign is displayed outside an office building in central Sydney, Australia July 24, 2015. REUTERS/David Gray

Join now for FREE unlimited access to Reuters.com

Register

Feb 10 (Reuters) – National Australia Bank (NAB.AX) joined its peers in cutting margins on Thursday, even as the country’s second-largest lender posted a 9.1% rise in profits in the first quarter due to growth in personal and business loans. .

Record-low interest rates and fierce competition in the mortgage market are cutting margins for Australian lenders, which are also being hit by borrowers switching to fixed-rate mortgages. Read more

The bank said net interest margin, a key measure of profitability, fell 5 basis points to 1.64% in the quarter.

Join now for FREE unlimited access to Reuters.com

Register

Chief executive Ross McEwan said while disruptions to supply chains and labor markets from the Omicron variant COVID-19 had created uncertainty, the bank was optimistic about the outlook for Australia and New Zealand. -Zealand.

NAB reported cash profit of 1.80 billion Australian dollars ($1.29 billion) for the quarter ended December 31, compared to 1.65 billion Australian dollars a year earlier and a Morgan Stanley estimate of approximately 1.60 billion Australian dollars.

The bank’s Common Equity Tier 1 (CET1) ratio, a closely watched measure of its available cash, was 12.4% as of December 31, down from 13% as of September 30.

($1 = 1.3926 Australian dollars)

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Shashwat Awasthi and Indranil Sarkar; Editing by Anil D’Silva

Our standards: The Thomson Reuters Trust Principles.

Comments are closed.