Bank executives highlight strong leadership, economic resilience, and support for customers facing cost-of-living pressures
The National Australia Bank (NAB) has delivered an optimistic outlook for its future, citing financial resilience, disciplined strategy execution, and a focus on supporting customers through challenging economic conditions.
Speaking at the bank’s annual general meeting (AGM), NAB chair Philip Chronican (pictured above left) credited the institution’s stability and growth over the past five years to strong leadership and a clear strategic focus.
“During the past five years, NAB, our colleagues and our customers have benefitted from strong and stable leadership focused on consistent and disciplined execution of the bank’s strategy,” Chronican said. “This has led to renewed strength, stability, and momentum in the bank.”
Addressing shareholders at this year’s AGM, Chronican reassured them that NAB remains well-positioned to navigate high inflation and rising costs of living, supported by its financial health.
“These attributes allow us to support our customers and the economy through cycles, including during the current period of high inflation and the impact of the higher cost of living,” he said. “NAB is in good shape with good momentum, and there is more we want to do to fulfil the ambition we hold for this organisation.”
The bank reported cash earnings of $7.1 billion for the 2024 financial year, an 8.1% decline from the previous year due to lower revenue and rising expenses. However, margins stabilised in the second half of the year, and dividends rose modestly to 169 cents per share, representing a payout ratio of 73.7%. NAB also returned $5.2 billion to shareholders through dividends and share buybacks, maintaining a robust Common Equity Tier 1 capital ratio of 12.35%.
NAB chief executive Andrew Irvine (pictured above right) highlighted the bank’s focus on customer-centred growth and innovation, as well as its efforts to simplify operations and enhance customer experiences. Irvine, who succeeded Ross McEwan earlier this year, pointed to recent strategic leadership appointments across business, institutional, and personal banking divisions as part of this focus.
Irvine also expressed confidence in Australia’s economic resilience, despite global and domestic challenges.
“Despite headwinds internationally and domestically, Australia’s economy is in reasonable shape, and we are optimistic about the longer-term outlook,” he said. “Business conditions are favourable, and the job market is resilient, positioning us well compared with global peer economies.”
Irvine noted that restrictive interest rates are helping to bring inflation closer to the Reserve Bank’s target range, with expectations for rate cuts in the first half of 2025. However, he acknowledged the financial pressures currently facing many Australians.
“In the meantime, we do recognise that many customers are finding the higher costs of living challenging, and we are here to help,” he said. “Our message is clear, please call us and call us early.”
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