Bulletin: National Australia Bank Can Maintain Sound Earnings Despite Margin Pressure

MELBOURNE (S&P Global Ratings) May 4, 2023--National Australia Bank Ltd.'s (NAB) earnings will remain sound over the next two years, despite increasing margin pressure. While the bank's net interest margin (NIM) across the half increased 13 basis points (bps) to 1.80%, its NIM for the most recent quarter was down 4 bps. This reflects increasing funding costs and strong competition in the Australian mortgage market despite rising interest rates. NAB (AA-/Stable/A-1+), one of Australia's four major lenders, announced today record cash earnings from continuing operations for the six months ended March 31, 2023, an increase of 12% over the prior half. The results were solid across all business units and in line with our expectations. NAB's credit losses should remain

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