Shares in NAB dipped 0.9 per cent to $28.91.
McEwan said the second half of the year had been a tougher period for the bank.
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“Challenges in our operating environment became more evident as the 2023 financial year progressed with the impacts of monetary policy tightening and inflationary pressures increasingly weighing on households and the economy,” he said.
McEwan said while households were generally resilient, the impact was uneven, and that the bank had seen a 25 per cent increase in accounts receiving hardship assistance and a 61 per cent increase in calls for help over 2023. “There is a group of the lower income who are really struggling,” he said.
McEwan said while the Australian economy was slowing, the country was well-placed to rebound in the second half of next year.
“Australia will avoid a recession,” he said. “Despite the headwinds, I’m optimistic with strong migration, lower unemployment and demand for our natural resources.”
NAB’s flagship business bank, which has a market share of 21.7 per cent, was the biggest driver of its growth. Its business and private banking division posted a 21.6 per cent increase in underlying profit, and its corporate and institutional division delivered a 19.5 per cent increase.
The bank announced a fully franked final dividend of 84 cents a share, compared with 78 cents a share in 2022.
Excluding one-off items, NAB’s expenses increased 5.6 per cent, which the bank said primarily reflected higher personnel costs, including additional headcount and salary-related expenses, along with investments in technology including fraud prevention and cybersecurity.
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Morningstar analyst Nathan Zaia said NAB’s results were broadly in line with his expectations, but that there were headwinds ahead for the industry more broadly.
“We all knew margin pressur ..
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