NAB chief executive Andrew Irvine says while economic growth has been slowing and the bank’s cash earnings have fallen, Australian households are proving pretty resilient.
“Economic growth is slowing and higher cost of living resulting from both higher rates and inflation is being felt by more households as well as businesses,” he said. “We have had a good result in a difficult environment.” Irvine said the bank had grown credit by nearly 9 per cent over the past 12 months, including 8.6 per cent growth in Australian SME business lending and 6.4 per cent growth in personal banking and business and private banking customer deposits. Meanwhile, in areas “where returns are less attractive, a selective approach has resulted in more subdued growth, including 3.7 per cent in Australian home lending”, he explained.
The bank is also facing elevated costs. NAB’s spending increased by 5.8 per cent, which it said reflected expenses in relation to its technology and compliance capabilities, including protections against fraud and investments in cybersecurity, and higher salary-related expenses.NAB CEO Andrew Irvine on Australian households in the cost-of-living crisisImpaired assets and 90-day late payments rose 13 basis points to 0.