NAB has reported cash earnings of $3.58 billion over the six months to March 2025, a 0.8 per cent increase on 2H24 and a 1 per cent increase on the prior corresponding period.
In its 1H25 results, released on Wednesday, the bank said its statutory net profit slumped 2.5 per cent on the PCP to $3.4 billion, while its underlying profit was flat, holding at around $5.46 billion.
Breaking down its key divisional performance, cash earnings in NAB’s personal banking segment fell by 6.8 per cent against 2H24 to $576 million. The bank said this reflected a decline in underlying profit and higher credit impairment charges.
In contrast, cash earnings in NAB’s business and private banking division grew 1.4 per cent to $1.63 billion, while corporate and institutional banking, and New Zealand banking, saw increases of 4.1 per cent and 12.5 per cent, respectively.
Andrew Irvine, who became group chief executive last year, noted the strong results despite challenging operating conditions.
“NAB is in good shape, has a clear strategy and the business is well placed for the long term,” Irvine said.
This comes as, six months ago, the bank refreshed its strategy to be a more “customer-centric, simpler and faster” organisation.
“We have plenty of work ahead but NAB is tracking in the right direction,” the CEO said. “We have three clear priorities – growing our core business banking franchise, driving our performance in deposits and improving in proprietary home lending.”
According to Irvine, the bank is making good progress. Home lending drawdown via its proprietary channels increased 25 per cent, while retail transaction account opens via its branches grew 32 per cent.
Moreover, revenue increased by 1.7 per cent on 2H24, which NAB said mainly reflected higher markets and treasury (M&T) income. Gross loans and advances increased by 2.5 per cent and deposits increased by 4.1 per cent.
Meanwhile, the bank’s net interest margin was stable at 1.70 per cent. Expenses saw a 1.4 per cent increase, with key drivers including higher personnel and financial crime-related costs, along with increased technology spend.
Looking forward, Irvine said the bank is optimistic on the underlying growth outlook for Australia’s and New Zealand’s economies.
“However, escalating global trade tensions are a key source of uncertainty,” he told investors.
“Against this backdrop, we have maintained strong balance sheet settings. Collective provisions represent 1.42 per cent of credit risk weighted assets, our CET1 ratio sits at 12.01 per cent and our FY25 term funding task is well progressed with over $20 billion raised in 1H25.”
NAB’s interim dividend of 85 cents, it also highlighted, “puts $2.6 billion back in the hands of shareholders”.
“As more than 40 per cent of our shareholders are retail investors, this is significant for the many mums and dads and retirees who depend on dividends for their income,” Irvine said.
“While we are getting simpler, faster and more focused on customers, safety and stability will always be a feature of NAB, and our balance sheet settings remain strong.”
