In good news for CEO Irvine, banking major’s business segment also sees steady growth
NAB’s total home loan book grew just shy of 5% year on year in the June quarter, increasing from $414.8 billion in June 2024 to $435.2 billion in June 2025.
On a quarter-on-quarter basis, the bank major’s home loan book grew by 2%.
NAB cited a “gradual improvement” in the share of home loan drawdowns via proprietary channels, but no precise split between broker and proprietary was disclosed in the results.
Back In NAB’s March’s first-half results, broker-originated loans comprised 61.1% of home loan drawdowns – this was down from nearly 65% in the first half of 2024.
Third-party originations are a major source of business for NAB, although chief executive Andrew Irvine has cited "improving proprietary lending and growing business banking" among NAB’s key priorities for long-term growth.
NAB increases business-lending book
Irvine has been under pressure to fortify NAB’s business-lending segment against encroaching competition from challenger and second-tier lenders.
Read more: NAB boss Andrew Irvine has most to lose from broker-led assault on business lending
Today’s results show steady growth in this all-important segment, with year-on-year growth of 7% to $323.9 billion, although quarter-on-quarter growth barely scratched 2%.
NAB also saw a further increase in credit risk in the third quarter.
Non-performing exposures increased by $623 million – or 5.5% – with a $349 million increase in default but not impaired assets and a $274 million increase in impaired assets.
The increase mainly reflected continued deterioration in the Business and Private Banking business lending portfolio, though this was at a slower pace than in the March 2025 half year.
Against the entire portfolio, NAB maintained a prudent loan book, with the ratio of non-performing exposures to gross loans and acceptances nudging up just five basis points to 1.54%.
We remain optimistic about the outlook and are well placed to manage NAB for the long term and deliver sustainable growth and returns for shareholders,” said Irvine.
NAB addresses payroll blunder
NAB also announced that operating expenses for the full year will be approximately 4.5% higher than the previous year.
This increase is largely driven by an estimated $130 million “related to the review and remediation of payroll issues”.
According to an ASX announcement, “this ongoing review and investment and the work undertaken to transition to a new Enterprise Agreement 2024 has helped identify further payroll issues.
As a result, NAB has initiated a broader review into payroll-related benefits under current and certain historical agreements.”
NAB Group executive people and culture, Sarah White said: “Paying our colleagues correctly is an absolute priority. We are sorry and apologise to our colleagues that this has happened and have commenced remediating those impacted.”
