NAB wealth business holds steady

NAB has recorded cash earnings of $764 million for its consumer banking and wealth business, a stable result despite a few setbacks.

In the half year to March 2017, NAB said its consumer banking and wealth division was impacted by higher funding costs, increased competition in home lending and reduced wealth income.

“[Net interest margin] stabilised compared to the September 2016 half year and more recent home lending market share trends are improving,” the bank said.

Overall, NAB reported cash earnings of $3.29 billion, up 2.3 per cent. Revenue increased 1.8 per cent, benefitting from growth in lending, improved fee collection and stronger trading income, the bank said.

NAB Group chief executive Andrew Thorburn said the results are “solid” and “reflects improving momentum”.

“There have been solid contributions across the business, in particular our priority segments of small and medium business where we have maintained or grown our leading market shares.

“We continue to invest in creating a truly customer centric culture at NAB, but we know we must do better to achieve a level of advocacy among customers that we can be proud of.”

Still, there are challenging times ahead, Mr Thorburn said.

“The operating environment for banks remains challenging, including heightened regulatory change, digital disruption and increasing stakeholder expectations,” he said.

“But Australia’s economic fundamentals provide a favourable backdrop including strong population growth and improving business conditions.

“In this environment we are well placed to deliver for our customers and our shareholders.”

 

 

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