NAB has posted a 76% rise in profits for FY21, topping out at a massive $6.56 billion in total New Profits After Tax (NPAT). Dividends grew to 67c, more than twice what the bank paid out to shareholders last year.
It continued a strong reporting season for the Big Four, after ANZ posted their own NPAT rise of 72% last week.
The mortgage sector was front and centre in the strong results at NAB, with the bank recording $98 billion in new home lending, a 4% rise on FY20.
NAB attributed its success in the mortgage space to streamlined lending policies and increased investment in tech, with features such as Simple Home Loans cited as strong drivers of proprietary growth.
41% of NAB home loans are now written by the broker channel, up from 37.2% last year, representing a strong investment in third party partnerships. The bank also announced that application processes currently only available on proprietary channels will be extended to brokers in FY22.
NAB also marked $102bn in new business lending, a 7% year-on-year rise, supporting their claim to be the biggest SME lender in Australia through increased market share in FY21.
The success in the SME sector was linked to greater investment in people, with 550 new customer roles creased in FY21, as well as investment in tech via the Quickbiz system.
“Our results this year demonstrate we have navigated a challenging environment while delivering better experiences for customers and colleagues, resulting in safe growth across our business,” said NAB chief executive Ross McEwan.
“Our bank has momentum, our strategy is clear and as lockdown restrictions ease, a pick-up in activity is expected. While some uncertainties exist in the outlook including the impact of tapering support, our balance sheet settings are strong and we are well positioned for the expected economic rebound in Australia and New Zealand.”
