Already a subscriber?New National Australia Bank chief executive Andrew Irvine declared an optimistic outlook for the economy after delivering a 12.8 per cent drop in first-half cash profit to $3.55 billion, slightly below expectations as competition trimmed margins.
“Revenue has softened from strong first half of 2023 levels, as the benefits of a higher interest rate environment have been more than offset by competition,” NAB said.UBS analyst John Storey said the new buyback was a positive, but underlying drivers are mixed. “A big question we have is, will an inline set of results be enough to sustain the upward momentum in NAB’s share price?” he said.
However, mortgage net interest margins had bottomed out and rose slightly in the fourth quarter, he said. “At least the trajectory is upwards now.”“Our first half financial performance has benefited from the disciplined execution of our strategy in a challenging environment,” Mr Irvine said. “This has helped us manage the impacts of slowing economic growth and competitive pressures while also absorbing a higher effective tax rate.