NAB's third-quarter cash profit up 6%

NAB's third-quarter cash profit up 6%

As a result of an increase in home and business loans, as well as higher interest rates, the Reuters-National Australia Bank Ltd posted an almost 6% increase in third-quarter cash profit.

The Reserve Bank of Australia has tightened its monetary policy this year, aiding the margins of banks that had to grapple with record low interest rates and stiff competition in the home-lending market for the past two years.

Melbourne-based NAB, as well as other members of Australia's Big Four, have passed on to customers a 175 basis-point increase in interest rates since May.

Excluding revenues from its markets and treasury business and the impact of acquiring Citigroup's Australia consumer business, NAB's net interest margin was up slightly, compared to the first half's quarterly average.

The acquisition of Citi's Australian consumer business was effective on June 1.

Cash profit at Australia's second largest lender was A $1.80 billion $1.26 billion for the quarter ended June 30, compared to A $1.70 billion a year ago. A Morgan Stanley estimate of A $1.80 billion was in line with the figure.

NAB said that costs for fiscal 2022 are expected to rise between 3% and 4%.