NAB chief “optimistic” on economic outlook; decrease in bad debts
National Australia Bank chief executive Ross McEwan says he is confident the economy will rebound once COVID restrictions are relaxed, while a growing loan portfolio boosted the bank’s third-quarter profits.
In a quarterly trade update on Thursday, NAB reported that its unaudited cash income was $ 1.7 billion, up 10.3%, thanks to the growth of the loan portfolio in loans mortgage (2%), small business (2.7%) and New Zealand (2.7% cent) loans during the June quarter. It recorded unaudited statutory net income of $ 1.65 billion for the third quarter.
The big bank’s quarterly profits were also helped by a $ 112 million reduction in the allowance for bad debts associated with COVID-19 and NAB further reduced the risk of its assets by selling $ 1.5 billion in loans. aeronautics.
At the height of the pandemic, around the same time last year, the NAB deferred more than $ 92 billion in home loans and $ 41 billion in business loans. The bank said current lockdowns in major cities had caused “less than $ 1 billion” in loan deferrals as of June 30.
Mr McEwan said the health crisis continued to create “uncertainty and challenges,” but continued loan relief would support customers while protecting the bank.
“However, we remain optimistic about the long-term outlook for Australia and New Zealand. The strong economic momentum leading up to this period, continued government support and relatively healthy customer starting positions give us confidence that ‘Once the restrictions are relaxed, the economy will rebound again. “
NAB will now continue to grow in the retail banking industry through the acquisitions of neobank 86,400 and Citigroup’s Australian customer business, while streamlining core operations to complete the sale of MLC Wealth.
“We are clearly focused on where and how we will continue to grow,” said McEwan.