Note: This report provides analysis and commentary based on public information and is not intended as investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.
Latest Update - 1H FY25 Key Takeaways
Cash earnings up 1.0% year-on-year to $3,583m, with stable net interest margin of 1.70% (down 2bps)
Strong business lending growth of 6.1% in Business & Private Banking and 8.2% in Corporate & Institutional Banking
Asset quality showing early signs of deterioration with impaired assets increasing from 0.15% to 0.22% year-on-year
Proprietary home lending channels showing improved momentum with drawdowns up 25%
High Net Worth customer advocacy declining, with NPS ranking falling from first to fourth among major banks
Robust capital position with CET1 ratio at 12.01%, supporting continued capital management
Operating expenses increased 3.0% to $4,818m, resulting in a cost-to-income ratio of 46.9% (up 80bps)
What's Changed?
Business Banking Momentum: Business lending growth remains strong at 6.1% in B&PB and 8.2% in C&IB, reinforcing NAB's market leadership
Asset Quality Trends: Early signs of deterioration with impaired assets increasing from 0.15% to 0.22% and default-but-not-impaired rising from 1.05% to 1.27%
High-Value Customer Advocacy: Significant decline in High Net Worth segment NPS, with ranking falling from first to fourth among major banks
Proprietary Channel Performance: Improving momentum with home lending drawdowns up 25% and system multiple improving to 0.9x from 0.3x
Leadership Transitions: Recent executive departures with Nathan Goonan resigning as CFO and Rachel Slade departing as Group Executive of Business and Private Banking
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