National Australia Bank (NAB) Q1 2025 TU earnings summary

Executive summary

• Statutory net profit for 1Q25 was $1.70bn, with unaudited cash earnings of $1.74bn, down 2% from the 2H24 quarterly average.

• Deposit balances grew 2%, Australian home lending rose 1%, and business lending increased 2% compared to 2H24.

• Focused on cost management, productivity savings, and supporting customers amid ongoing economic challenges.

Financial highlights

• Revenue increased 3% quarter-over-quarter, mainly from higher Markets & Treasury income; net interest margin declined slightly.

• Operating expenses rose 2%, driven by higher personnel, financial crime, and technology costs, partially offset by productivity gains.

• Credit impairment charge was $267m, with increases in both individually assessed and collective charges.

• Group CET1 ratio at 11.6% as of 31 December 2024, down from 12.4% at 30 September 2024, mainly due to dividend payment and risk-weighted asset growth.

Outlook and guidance

• Targeting productivity savings exceeding $400m in FY25 and operating expense growth below FY24's 4.5%.

• Economic outlook improving, but cost of living and interest rate pressures persist; maintaining prudent balance sheet settings.