NAB today released its first quarter trading update.

On the results, NAB Group CEO Ross McEwan commented:

“We have started FY24 well. Our 1Q24 financial performance is sound and there is good, targeted momentum across our bank.

“Over the December quarter lending balances rose 1%. This includes 2% growth in Australian SME business lending and 1% growth in Australian home lending. Customer deposit balance growth of 2% across both Business & Private Banking and Personal Banking is also pleasing.

“1Q24 cash earnings declined 3% compared with the 2H23 quarterly average but were broadly stable excluding the impact of a higher effective tax rate of 30%. This reflects a continued disciplined approach to growth during what remained a highly competitive period, combined with a focus on productivity to help offset cost pressures.

“Strong balance sheet settings were maintained over the December quarter. Our Group CET1 ratio remains above our target range of 11-11.5% even after allowing for completion of our current on-market share buy-back. Collective provisions as a ratio of credit risk weighted assets increased, and our term wholesale funding task is well progressed with $20 billion issued as at 9 February.

“Improving customer and colleague outcomes remains our key focus to deliver sustainable growth and improved shareholder returns.

“While economic growth has slowed, the Australian economy remains resilient and the majority of our customers are faring well. We continue to be optimistic about the outlook and our bank is in good shape as Andrew Irvine transitions to CEO over coming months.”

The full Q1 report can be found here.