National Australia Bank (NAB) Q3 2024 TU earnings summary

Executive summary

• Statutory net profit for 3Q24 was $1.90bn, with cash earnings at $1.75bn, reflecting a stable operating environment and continued execution of strategic priorities.

• Lending balances rose 1% over the quarter, driven by 3% growth in Australian SME business lending; home lending grew 1% but remained below system growth.

• Deposit growth was 1% across Business & Private Banking and Personal Banking.

• Asset quality deteriorated further in 3Q24, though most customers remain resilient; liquidity and provision coverage remain healthy.

• Capital position remained strong, supporting the ongoing on-market share buy-back.

Financial highlights

• Statutory net profit: $1.90bn (unaudited); cash earnings: $1.75bn (unaudited).

• Cash earnings declined 0.2% vs 1H24 quarterly average; underlying profit down 2%.

• Revenue declined 1% vs 1H24 quarterly average; excluding Markets & Treasury, revenue rose 1%.

• Net interest margin was stable; expenses increased 1% mainly due to higher salary costs.

• Credit impairment charge was $118m, reflecting further asset quality deterioration.

Outlook and guidance

• Targeting productivity savings of ~$400m in FY24 and cost growth in FY24 to be lower than FY23.

• Strategic priorities evolving to focus on better customer service and reducing complexity, while maintaining disciplined execution.