NAB grows mortgage market share as interim profits rise to $2.9 billion

NAB has picked up market share in the housing market while also reporting a rise in net interest margins on home loans and other personal banking products as it reported a $2.9 billion first-half interim profit for the six months to March 31.

The result was up 3% on the corresponding period last year and completes the major bank interim results reporting season after ANZ and Westpac both reported a 10% rise in interim profits for the six months to March last week.

The Commonwealth Bank reported a 1% rise in its interim results to December 31 in February meaning the combined half-year profits of the big four banks is over $13 billion.

Commonwealth Bank, Westpac and NAB have all passed on the May rate cut in full with ANZ to make its announcement tomorrow.

NAB grew its home loan book by 5% over the reporting period from $139 billion to $147 billion.

Net interest margins in its personal banking division (mortgages, deposits, credit cards) increased by 15 basis points compared with the March 2012 corresponding period rising to 2.09%.

NAB’s share of the home loan market grew by 15% to 15.2% over the report period.

A year-and-half ago its share of the market was 14.5%.

There was a slight increase in mortgages more than 90 days in arrears up from 0.52% to 0.54% of total outstanding NAB mortgages.

Customer deposits picked up by 7.2% to reach $89 billion.

NAB CEO Cameron Clyne highlighted the “good result” in the personal banking division with further strengthening of the bank’s position in home lending and customer deposits on the back of its “differentiated customer proposition”.

He called it a “solid” March half-year result.