NAB today released its first quarter trading update.
On the results, NAB Group CEO Andrew Irvine commented:
"We have started FY25 well. Our 1Q25 performance is sound and execution of our refreshed strategy is underway.
Over the December quarter, our focus on improving deposit performance has supported good growth of 2% in deposit balances. Australian home lending grew 1% and we have seen improved momentum versus system of 0.9x compared with 2H24 and increased drawdowns through our proprietary channels. Business lending balances rose 2% including 1% growth in SME business lending.
We have delivered further efficiency benefits this quarter, helping us manage costs while investing for long term sustainable growth. We continue to target productivity savings in excess of $400 million in FY25 and for operating expense growth in FY25 to be lower than FY24 growth of 4.5%.
The economic outlook is improving but cost of living and interest rate challenges persisted during 1Q25. While most customers are proving resilient, we have maintained prudent balance sheet settings to allow us to support customers while keeping our bank safe.
Our refreshed strategy is focused on becoming the most customer centric company in Australia and New Zealand. While still early days, we have made good progress during 1Q25 laying the foundations required to successfully execute our strategy. We remain optimistic about the outlook and are well placed to manage our business for the long term and deliver sustainable growth and returns for shareholders."
The ASX announcement can be found here.
The full Q1 report can be found here.
