Economic conditions have contributed to NAB's strong Half Year Results, with NAB recording its fastest business lending growth since the GFC, NAB's CEO Ross McEwan said.
Speaking on 5 May, Mr McEwan said that the results reflected strong contributions by all NAB's businesses and that he was determined to seize the opportunity for the bank to grow.
"Focused investment has been key to delivering strong momentum across our businesses. The recent shift to a higher growth outlook provides greater scope to keep investing while continuing to deliver productivity benefits," he said.
NAB also reset its cost growth target to allow the bank to pursue growth opportunities while maintaining cost disciplines and complete work required under NAB's Enforceable Undertaking with AUSTRAC.
Recent business surveys indicate business conditions and confidence are above the long-term average and business credit is forecast to grow at the highest levels since the Global Financial Crisis.
"It is a good time to be Australia's largest business bank," Mr McEwan said.
He added that NAB was well positioned for the changing environment and strength of the economy, while he was conscious of potential challenges.
"There are some clear headwinds over the medium term including inflationary pressures which, although not as elevated compared to some other countries, are driving up household budgets," he said.
Economic outlook
Recent data highlights ongoing strength in the Australian economy. Consumption has rebounded strongly from lockdowns and is expected to remain robust, in part supported by a run-down in accumulated household savings. This, combined with strong levels of dwelling and business investment plus government spending, support forecast GDP growth of 3.4% in 2022 and 2.1% in 2023.
Given the strength in activity and labour demand, the unemployment rate is expected to fall below 4% in coming months and remain low for some time. Against this backdrop, wages growth and underlying inflationary pressures are building, with monetary policy tightening now underway.
Read NAB's ASX announcement here.
