The continuing lockdowns are creating challenges for some borrowers, bank chief says
National Australia Bank has delivered a solid quarterly trading update, but its data showed that some customers are still struggling with loan repayments.
NAB posted an unaudited statutory net profit of $1.65 billion for the June quarter, up from $1.5 billion for the same period last year when it was handing out COVID-related mortgage deferrals, The Australian reported.
This year, there were “significantly better credit impairment outcomes,” NAB chief executive Ross McEwan said. However, he said that the continuing COVID-19 crisis and the related lockdowns were creating challenges for some borrowers.
While the ratio of loans more than 90 days overdue and gross impaired assets to gross loans and acceptances fell 10 basis points to 1.13%, that’s still up from 1.06% in the same quarter in 2020, The Australian reported.
NAB’s report came the day after Commonwealth Bank CEO Matt Comyn said the bank was still processing 300-400 loan deferrals a day, but that was “small relative to last year.”
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NAB also posted a 2% rise in housing lending for the quarter, and a 4.3% rise in lending to small to medium-sized businesses, The Australian reported.
“The strong economic momentum leading into this period, ongoing government support and customers’ relatively healthy starting positions give us confidence that once restrictions are eased, the economy will again bounce back,” McEwan said.
