(Bloomberg) -- National Australia Bank Ltd. said asset quality deteriorated in the third quarter amid further signs of stress building in the nation’s economy.
Unaudited cash earnings came in at A$1.75 billion ($1.2 billion) in the three months ended June 30, according to a statement Friday.
“The economic environment, including persistent inflationary pressures, is challenging for our customers,” Chief Executive Officer Andrew Irvine said in the statement. “While most customers are proving resilient, not unexpectedly we have seen asset quality deteriorate further” in the third quarter.
The ratio of non-performing exposure to gross loans and acceptances increased by 11 basis points from March 2024 to 1.31%.
Lending to businesses, NAB’s strong suit, is in focus as it’s been a bright spot for all four of Australia’s largest lenders at a time when households are struggling with bills and home loans have become a much more competitive market.
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