NAB’s net interest margin has declined by 5 basis points to 1.64 per cent during the first quarter of the year, becoming the latest bank to reveal tightening margins this earnings season.
The bank said compared with the second half of the 2021 financial year quarterly average, cash earnings rose by 12 per cent, reflecting higher volumes across housing and business lending, as well as increased fees.
Expenses increased by 2 per cent, reflecting higher salaries and leave costs.
NAB reported unaudited statutory net profit of $1.8 billion.
Its group common equity tier 1 ratio was 12.4 per cent.
“NAB has started the 2022 financial year well,” said NAB chief executive Ross McEwan.
“Volumes have been strong over the quarter with lending and deposits each up $18 billion. In Australia, over the three months to December 2021, home lending grew 2.6 per cent and SME business lending increased 3.4 per cent, and we gained market share across our core lending and deposit products. New Zealand loan growth was also strong at 2.2 per cent over the same period.
“Disruptions to supply chains and labour markets caused by the recent spread of Omicron present challenges for some of our customers.
“While this creates uncertainty, we remain optimistic about the outlook for Australia and New Zealand and are well positioned to continue to grow with a strong balance sheet and disciplined execution of a clear strategy.”