National Australia Bank says the outlook for credit quality remains benign but the impact of rising interest rates was offset by higher funding costs, as it reported a $1.8 billion third quarter profit.
“The majority of our customers are well-placed to manage these challenges, including approximately 70 per cent of customer home loan repayments ahead of schedule.”“Balance sheet settings remain strong and we are well advanced on our financial year 2022 term wholesale funding task with $34 billion raised by end June,” he said.
“We have a clear strategy and executing this with discipline is our key priority. We will continue to focus on getting the basics right, managing our bank safely and improving customer and colleague outcomes to deliver sustainable growth and improved shareholder returns,” Mr McEwan said. “There has been no impact on credit impairment charges from changes to assumptions used in the economic adjustment or forward looking adjustments during the quarter,” the bank confirmed.“Excluding markets and treasury, NIM was up slightly reflecting the benefit of a rising interest rate environment, partly offset by home lending competition and higher wholesale funding costs,” NAB said.