National Australia Bank has reported a 10.3% rise in unaudited cash earnings to $1.70 billion for the three months to June – its first quarter.
Unaudited statutory earnings totalled $1.65 billion for the quarter.
The result followed the upbeat full year figures from the Commonwealth bank on Wednesday with a high profit, dividend and massive $6 billion buyback to be funded from the results of a string of asset sales.
The bank said the improvement came from loan book growth across mortgage (2%), small business (2.7%) and New Zealand (2.7%) lending during the June quarter.
The bank also revealed that it had deferred less than $1 billion during the latest COVID-19 lockdowns in NSW, southeast Queensland and Victoria.
The big help though was a $112 million reduction in the provision for bad loans caused by COVID-19.
NAB said it further de-risked its loan portfolio by selling $1.5 billion in aviation loans.
CEO Ross McEwan said he is confident the economy will bounce back thanks to ongoing government support.
Mr McEwan said the health crisis continued to create “uncertainty and challenges” but continued loan relief would support customers while protecting the bank.
“However, we remain optimistic about the long-term outlook for Australia and New Zealand. The strong economic momentum leading into this period, ongoing government support and customers’ relatively healthy starting positions gives us confidence that once restrictions are eased, the economy will bounce back again.”
The NAB announced a $2.5 billion buyback last month.
