NAB has announced a significant increase in cash earnings thanks to above system growth in mortgage lending.
Speaking at the bank’s annual general meeting yesterday, chairman Michael Chaney told shareholders the overall NAB Group’s results were improved over the previous year.
“The group’s strategic focus remains on the Australian franchise, which performed well during the year. The personal banking division achieved a 17.5% increase in cash earnings through above system growth in mortgage lending and improved margins,” he said.
In the second half of this year NAB was 1.3x system and thepersonal bank 2x system.
Chaney highlighted major structural changes implemented throughout the year designed to “position NAB for the future of banking”.
He also pointed to the “explosion” of new regulation the banking sector has had to deal with in the last five years, resulting in a rise in the cost of compliance.
“We welcome the new Australian Government’s announced three-year moratorium on significant new regulation,” he said.
“Any new regulation must take into account the potential impact on Australan banks’ ability to be competitive in a global market.”
Chaney pointed to the upcoming Financial Systems Inquiry as “an important opportunity to examine the challenges facing the financial system, including the important issue of funding Australia’s future”.
“Business conditions are subdued and unless economic reform and restructuring continue, are likely to remain so. That is the challenge facing governments and all participants in the economy.”
