National Australia Bank: Ticking Along Nicely With No Big Bad Debt Expense Boom

Despite headwinds to net interest margins, National Australia Bank’s first-quarter cash profit of AUD 1.8 billion is solid and is on track to meet our full-year forecasts. Profit in the quarter is 3% lower than the quarterly average for the second half of fiscal 2023. The 17% fall in profit from the previous corresponding period sounds alarming. Still, it shouldn’t surprise, as it reflects the downward NIM trajectory and bad debt expenses rising from very low levels, similar to the second half of last year.