National Australia Bank (ASX: $NAB) 1H24 Financial Results Overview

National Australia Bank (ASX: $NAB) has reported its 1H24 financial results, including a $3,494m statutory net profit and 11.7% cash Return on Equity (ROE). The bank's cash earnings decreased by 3.1% compared to 2H23 and 12.8% compared to 1H23. The Group Common Equity Tier 1 (CET1) ratio stands at 12.15%.

Executive Commentary on 1H24 Financial Performance

Our 1H24 financial performance has benefited from the disciplined execution of our strategy in a challenging environment. This has helped us manage the impacts of slowing economic growth and competitive pressures while also absorbing a higher effective tax rate. Compared with a very strong 1H23 result, cash earnings were 12.8% lower, but the decline was more modest versus 2H23, down 3.1. Consistent investment in our better returning segments is supporting good growth over the 12 months to March 2024. This includes 8.6% growth in Australian SME business lending and 6.4% growth in Personal Banking and Business and Private Banking customer deposits. Staying safe and having prudent settings are non-negotiables for us. Our CET1 ratio is above our target range, supporting a $1.5 billion increase in our on-market share buy-back. Liquidity and provisions remain strong and our FY24 term funding task is well progressed with $23 billion raised in 1H24.

Summary of 1H24 Financial Results and Outlook

National Australia Bank (ASX: $NAB) has reported a $3,494m statutory net profit and 11.7% cash Return on Equity (ROE) for 1H24. The bank's strategic focus on driving better outcomes for colleagues and customers and delivering sustainable growth and returns for shareholders has positioned it strongly as a simpler bank. The bank remains optimistic about the outlook for the Australian economy and is well placed to continue managing its business for the long term. The 1H24 results reflect disciplined execution of the bank's strategy in a challenging environment, with consistent investment in better returning segments supporting good growth. The bank's CET1 ratio is above the target range, and liquidity and provisions remain strong. Looking ahead, the bank aims to become even simpler while continuing to remove complexity across its operations, with a clear focus on accountability and execution.