NAB has today released its 2023 first quarter trading update to the market.

NAB CEO Ross McEwan said Australia’s biggest business bank is in good shape and will continue to support customers through changing economic circumstances.

“We have started FY23 with a strong financial performance and our strategy is continuing to drive targeted growth across our business. Lending and deposits both increased by 1% over the December quarter including above system growth in Australian SME business lending,” Mr McEwan said.

“1Q23 cash earnings rose 18% compared with the 2H22 quarterly average. The higher interest rate environment, resulting from central bank actions to curb inflation, has benefitted our revenue this period. But this is also causing economic growth and house prices to soften, and loan repayments to increase.

“We know these changing circumstances, combined with cost of living pressures, will create difficulties for some of our customers, and we have a range of options available for those needing support.

“Overall though, continued strong employment conditions and healthy savings buffers mean most customers look well placed to manage through this period.

“Our business is in good shape for this environment. Capital and provisioning remain strong and we are well advanced on our FY23 term wholesale funding task with $20 billion issued by 10 February. We are investing to deliver simpler, more digital experiences for customers and colleagues and continue to target productivity benefits of approximately $400 million in FY23.

“Executing our strategy remains our key priority. We are focused on getting the basics right, maintaining cost discipline, managing our bank safely and improving customer and colleague outcomes to deliver sustainable growth and improved shareholder returns.”

For full details, see the ASX announcement available on NAB’s Financial Results page. The report is also available to download on the right side of this page.