NAB and its customers continue to benefit from the focused execution of its strategy and a more stable operating environment, today announcing a sound Full Year result to the market.
NAB CEO Andrew Irvine said he was really pleased with how the bank is tracking.
Supporting Australia’s businesses and the right mix
The result highlights the strength of NAB’s relationships, reflected in the consistent growth of its leading business bank.
In FY24 NAB lent $48 billion to businesses to help them grow.
“Businesses I talk to remain ambitious to grow. They’re eager to invest and be more productive. As Australia’s leading business bank, we are ready to support them,” Mr Irvine said.
“Small businesses are the heartbeat of the Australian economy and when they succeed, we all do.”
Additionally, NAB’s Corporate & Institutional Bank, Personal Bank, BNZ and Ubank also performed well, demonstrating NAB has the right mix in its customer facing businesses.
NAB’s performance
Mr Irvine’s comments came as he announced cash earnings over the year were $7.1 billion, 8.1% lower than the strong levels of FY23 with revenue primarily impacted by home lending competition.
The bank noted pressure came off margins in the second half of the year as NAB experienced more stable operating conditions. The final dividend of 85 cents takes the full year dividends to $1.69 and puts $5.2 billion back in the hands of shareholders.
“More than 40% of NAB’s shareholders are retail investors and these dividends are important income for this group, many of whom are mums and dads and retirees,” Mr Irvine said.
The economy and an optimistic outlook
On the economy in Australia and New Zealand it continues to prove resilient.
Mr Irvine noted low unemployment has been the key to this.
“Growth continues to be soft and below trend, however inflation is headed in the right direction.
“While I believe the next move in interest rates will be down, they remain elevated and together with cost of living pressures causing customers to tighten their belts. They don’t like it, but they are adapting. For those customers continuing to find things tough, we are here to help.”
Next year NAB is optimistic inflation will stabilise, interest rates will drop, and Australia will see improvements in the housing market.
“There is light at the end of the tunnel,” Mr Irvine said.
Looking ahead: Customer centricity
Last month NAB shared its refreshed strategy with more than 38,000 colleagues on its ambition to be the most customer centric company in Australia and New Zealand.
Mr Irvine said the solid foundations of the bank and where we want to grow and invest are not changing.
“What is changing is our ambition to be better for customers, to be simpler and to be a faster-paced organisation. There will be no change to our discipline in managing costs, and no change to our focus on keeping our bank and our customers safe.”
“We are becoming a more customer-centric, simpler and faster-paced organisation. We will do this while retaining discipline and keeping the bank safe. We will always prioritise stability, good governance and sustainable growth.”
“We will continue to help more people achieve their dreams of buying their first home or open up a small business. We will help more people hire and grow,” Mr Irvine said.
“Customers must be at the centre of everything we do as a company.”
NAB CEO Andrew Irvine reflects on NAB’s 2024 Full Year Results and delivering for customers – watch the video interview.
Read about how NAB, as Australia’s largest business bank, is supporting customers like il Mercato Centrale Australia to grow.
