The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Victor German - Macquarie Research - Analyst
: I was just -- and I appreciate you don't like talking about sort of exit margins and things like that, but share price is down [7.5%]. I think it'd be
worthwhile just making sure that everyone is on the same page. If I look at your first quarter disclosure, ex markets, you disclosed the number was
1.82% for margins. Is that right?
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MAY 04, 2023 / 12:30AM, NAB.AX - Half Year 2023 National Australia Bank Ltd Earnings Call
Question: Victor German - Macquarie Research - Analyst
: So first quarter margin in your trading update, it says that your margin ex markets was 1.82%, and now you're saying its 1.76%. It doesn't imply 6
basis point decline? Or am I getting something wrong?
Question: Victor German - Macquarie Research - Analyst
: Right. Because I think as people are sort of looking at 1.82% versus 1.76%, it kind of implies that you're exiting this quarter or exiting the half at a
margin, which is close to 1.70%, which sort of implies quite a sizable downgrade to consensus. It sounds like you're saying that, that's probably a
little bit too aggressive to look at it like that?
Question: Victor German - Macquarie Research - Analyst
: And so yes, so the question I had was capital position looks very strong. You've obviously been talking about, given you don't have a lot of franking
credits to ongoing buybacks. Why not announce the buyback now given how strong your capital position is looking versus your target?
Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst
: I just got a question, Ross. The whole issue around cash backs is coming through, and I don't know you said you don't want to compete in below
the cost of capital and a few of your peers have said during the comment. But how do we wean the market offset, in that we're now in a situation,
where the banks have outsourced distribution to third parties, you are involved in that as well. We're now giving cash backs. And so 2 questions.
Where do you think this goes to over a period of time? And probably for Gary, how has this impacted the average life of the loan? What's it down
to over the last [while]? And given we're seeing this continue, why won't we continue to see the churn through the industry continuing.
Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst
: (inaudible).
Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst
: (inaudible).
Question: Jonathan Mott - Barrenjoey Markets Pty Limited, Research Division - Analyst
: So is it trying to get cohort of customers to the mortgage business, and I know, a market trend, but I use it anyway, these people partner [within]
they have got credit issues or potential credit issues, and then, you're getting a cohort of customers still are in good financial position are financially
incentivized and the broker is also financially incentivized to rotate quickly?
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MAY 04, 2023 / 12:30AM, NAB.AX - Half Year 2023 National Australia Bank Ltd Earnings Call
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