National Australia Bank recorded a 16% rise in cash earnings in the first quarter, reporting A$2.02 billion for the three months ended December 31, compared with A$1.74 billion in the prior-year period. The lender attributed the improvement to stronger activity in its business and home lending segments.
Quarterly data showed business lending volumes expanded by 7% year-on-year, while housing loan volumes were up 5% from a year earlier. The bank said these volume gains were supported by a favourable domestic economic environment.
Net interest margin - a closely watched gauge of lending profitability - rose by 2 basis points to 1.80% in the quarter. That small uptick in margin, combined with higher lending volumes, contributed to the increase in cash earnings.
On the capital side, the bank reported a slight decline in its common equity tier 1 measure. The CET1 ratio fell to 11.48% in the first quarter, down from 11.6% a year earlier.
Overall, the quarter reflected a mix of operational momentum in lending and a modest tightening of regulatory capital headroom. The figures reported are stated in Australian dollars and include the currency reference ($1 = 1.4120 Australian dollars).
The available information highlights the bank's revenue drivers for the quarter - loan growth across business and housing portfolios and a marginally improved margin - while also flagging a small compression in CET1. No additional guidance or forward-looking projections were included in the reported figures.