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National Australia Bank first-quarter profit rises 9% on robust lending -Breaking


© Reuters. FILE PHOTO – A sign for National Australia Bank (NAB), is seen outside an office in Sydney, Australia on July 24, 2015. REUTERS/David Gray

(Reuters] – National Australia Bank, (OTC:), on Thursday joined the ranks of its peer banks and flagged lower margins. Despite posting a 9.1% increase for first quarter profits due to home-and business lending growth, it was still second largest lender in Australia.

Australian lenders are suffering from record-low interest rates and intense competition in the market for home loans. They are also being affected by borrowers who switch to fixed rate mortgages.

According to the bank, net interest margin (a crucial measure of profitability) fell by 5 basis points to 1.644% during quarter.

Ross McEwan, chief executive of Omicron COVID-19 was positive that the outlook is good for Australia and New Zealand, despite disruptions to the supply chain and labour market caused by this variant of Omicron COVID-19.

NAB recorded cash earnings in excess of A$1.80billion (1.29billion) for its quarter ending Dec. 31. This compares with A$1.65billion last year and an increase of A$1.65billion in 2017. Morgan Stanley Estimated at A$1.60 Billion (NYSE:

Common equity tier 1 (CET1) was 12.4% as of Dec. 31 compared to 13% at September 30.

($1 = 1.3926 Australian dollars)

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