NAB today released its third quarter trading update.

On the results, NAB Group CEO Andrew Irvine commented:

“Our 3Q24 result reflects a more stable operating environment and benefits from the consistent execution of our strategy.

“Lending balances rose 1% over the June quarter, supported by 3% growth in Australian SME business lending as we continue to prioritise growth in our SME franchise. In Australian home lending, our growth was sub-system at 1%. Balancing returns and growth in this dynamic market will remain important. Deposit growth is an ongoing focus and was 1% across Business & Private Banking and Personal Banking over 3Q24.

“We have delivered further efficiency benefits this quarter, helping us manage costs while investing for long term sustainable growth. We continue to target productivity savings of approximately $400 million in FY24 and for cost growth in FY24 to be lower than FY23.

“The economic environment, including persistent inflationary pressures, is challenging for our customers and we are here to help them. While most customers are proving resilient, not unexpectedly we have seen asset quality deteriorate further in 3Q24. It is essential we keep our customers and our bank safe. Liquidity and collective provision coverage are healthy. Capital remained strong over the quarter supporting the continuation of our on-market share buy-back.

“Our strategy has served us well over recent years. As we build on this progress, our strategic priorities will evolve including an increased focus on delivering better service to customers and removing complexity across NAB. But there will be no change to our disciplined approach to accountability and execution. We remain well placed to manage our business for the long term and deliver sustainable growth and returns for shareholders.”

The full Q3 report can be found here.