National Australia Bank third-quarter cash earnings rise marginally

NATIONAL Australia Bank reported a slight increase in its cash earnings for the third-quarter on Monday, helped by improved margins and growth in business and home lending.

The Reserve Bank of Australia has cut interest rates by 75 basis points so far this year, delivering the latest reduction last week while signalling further easing.

The lower interest rate environment has supported bank lending margins, aided by higher lending volumes and improved asset quality.

NAB said its net interest margin - a closely-watched measure of bank performance which compares interest payments received on loans minus interest paid out to deposit holders - increased by 8 basis points compared with the quarterly average of the first half.

The country’s top business lender posted cash earnings of A$1.77 billion (S$1.5 billion) for the quarter ended June 30, compared with A$1.75 billion a year ago. REUTERS