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NAB home loan balances grow 8.5pc

by Nick Bendel10 minute read
The Adviser

NAB has reported “good growth in mortgage lending” despite its net profit remaining steady.

The major reported a $1.7 billion net profit for the third quarter, which was the same result as the year before.

Cash earnings rose seven per cent to $1.6 billion, while revenue fell one per cent and expenses fell six per cent.

Home loan balances grew at an annualised rate of 8.5 per cent, with housing lending growing at 1.1 times system.


Business lending balances grew at an annualised rate of 5.5 per cent over the quarter, which was 0.8 times system.

Chief executive Andrew Thorburn said NAB had achieved a “satisfactory” third-quarter result.

“While revenue growth remains challenging, Australian home lending continues to achieve market share gains and Australian business loan growth improved in what is traditionally a stronger quarter,” he said.

“In our core Australian and New Zealand franchises, we have real opportunities ahead, including achieving sustainable growth in business banking while continuing to deliver strong home loan growth and providing a better experience for customers.”

Meanwhile, NAB Broker general manager Steve Kane has said that the bank remains committed to the broker channel over the long term.

“We believe the role of brokers and the broker channel will continue to grow, so brokers are absolutely critical to NAB's success,” he told The Adviser.

“Our goal is to be the lender of choice for brokers and we are focusing on building world-class relationships with our broker partners.”

Mr Kane said NAB planned to build stronger partnerships with brokers by listening to market feedback and supporting industry events.

[Related: NAB loan book reaches $371bn]