NAB has kicked off the reporting season by announcing record profits and mortgage growth three times system.
The bank has reported a cash earnings increase of 19.2% to $5.5bn. The result brought the bank's full-year net profit to $5.22bn, a 23.6% rise on last year.
Fueling NAB's profit results was a decline in bad debts. NAB saw charges for bad and doubtful debts fall $441m to $1.8bn, with an improvement in 90-plus day arrears. The bank also saw home lending grow at 3.2 times system growth.
While the bank managed strong profit growth, it saw a slight decline in its net interest margin. Net interest margin fell 12bps for NAB to 2.19%, a result the bank put down to "changes in funding mix, as well as competition for deposits". NAB also stated that its elimination of mortgage exit fees saw its "other operating income" fall 2.3%.
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