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By: Staff Reporter
NAB’s decision to keep its interest rates low is part of a win-win strategy, the bank’s chief financial officer Mark Joiner has said.
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According to Mr Joiner, NAB is determined to keep the rates on its mortgage products competitively priced in a bid to build market share.
“The fair-value agenda is really a long term philosophy. To have a sustainable business you really have to have a win-win, or an appropriately based relationship with your customer. You can’t have them banking with you because you’re the least irritating,” he told The Australian Financial Review.
While the margins are obviously not as good for NAB as they are for some of the other major lenders, given they raised interest rates out of step with the RBA in December last year, Mr Joiner said the bank was still getting attractive returns.
“We’re not ashamed to make profits out of customers but we want to provide good value out of that,” he says.
“It makes our staff feel better and it will build our shares over time. But it won’t happen instantaneously.”
