During the 2023 financial year, the National Australia Bank (NAB) reported a 7.6 percent increase in net profit to $7.4 billion. The bank’s net interest income climbed 13.2 percent to $16.8 billion, while net operating income increased by 12.9 percent to $20.7 billion.
NAB’s strong performance in the financial year was supported by an 8.8 percent rise in cash earnings to $7.7 billion. Shareholders were awarded a fully franked final dividend of 84 cents per share, building on a 83 cents per share interim dividend previously provided in the first half of the year.
However, despite overall strong financial results, the bank’s performance experienced a decline in the second half of the financial year. Cash earnings and net profit fell, while net interest income decreased 1.7 percent compared to the first half of the year.
NAB’s CEO, Ross McEwan, described the financial results as strong and believes the bank is well-prepared to navigate the economic transition. In Australia, the bank reported a focus on returns and a measured approach to growth in the housing sector.
The bank experienced competitive pressures and inflationary impacts in the second half of the year, offsetting the benefits of a higher interest rate environment. NAB aims to address these challenges by providing simpler digital banking experiences and investing in digital home loan initiatives.
Looking ahead, NAB expects Australia’s economic growth to continue slowing due to household consumption moderation, inflation, and interest rate pressures. While economic downturn may be avoided, NAB anticipates Australia’s GDP growth to fall and the unemployment rate to rise, as the bank continues to navigate changing economic conditions. Additionally, NAB notes that uncertainties in New Zealand’s fiscal policy following its recent election could impact its operations there.