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[BUSINESS] · Australia · 9 sources

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National Australia Bank reports profit rise amid cautious housing outlook

National Australia Bank (NAB) reported a third-quarter cash profit of $1.83 billion, a 4% increase from the previous year, driven largely by lower bad debt charges. Despite the profit rise, the bank issued a cautious outlook for the housing market, citing higher interest rates, recent federal tax changes, and geopolitical uncertainty as primary challenges for borrowers.

NAB expects housing credit growth to reach only 2.5% in FY27, a forecast significantly lower than its major competitors. The bank anticipates a contraction in investor lending of 1.4%, while owner-occupier lending is projected to grow by 4.5%.

This trend is mirrored across Australia’s major lenders. All four big banks have reported double-digit declines in mortgage applications. Specifically, Westpac saw a 20% decline, Commonwealth Bank (CBA) a 15% fall, and ANZ a 12% drop. Data from Equifax corroborates this slowdown, showing overall mortgage demand fell 16.4% in the year to July, with first-home buyer demand plunging 19.2%.

Entities

ANZ · ASX · Andrew Irvine · Australia · CommSec · Commonwealth Bank of Australia · Equifax · National Australia Bank · National Australia Bank Ltd · Rask Australia · Reserve Bank of Australia · Westpac

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