NAB Q3 profit jumps to $1.8 billion

National Australia Bank posted a quarterly profit of $1.8 billion, helping more than two-thirds of its mortgage payments ahead of schedule, helping the majority of its clients better manage the impact of inflation and rising interest rates says there is.

The bank released its quarterly update on Tuesday morning, with cash earnings up 6% over the same quarter last year. Lending and deposit momentum continued, rising 2% and 4% respectively in the June quarter, the bank said.

NAB Chief Executive Ross McEwan described the quarterly results as “pleasing” and said the bank’s clients are well positioned to navigate the difficult economic environment.

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“As the economy changes, low unemployment and healthy household and business balance sheets have helped cushion the impact of rising inflation and rising interest rates. We are well positioned to meet these challenges, including about 70% of our customers’ mortgage payments are ahead of schedule,” he said.

“We have a variety of options for customers who need our support.”

Banks’ net interest margins fell slightly, but NAB said margins rose slightly when market and treasury income were excluded.

McEwan said the business is in good shape for the evolving economic environment.

“We have a clear strategy, and executing it with discipline is our number one priority. We will continue to focus on delivering sustainable growth and improving shareholder returns.”