NAB had its fair share of controversy over the last year or so... but now, it just made a huuuge quarterly profit.
👉 Background: NAB is one of Australia’s big four banks and it has had its fair share of controversy over the last year or so. NAB was in court last year about staff workloads, then it decided to launch a buy now pay later service as the industry crashed.
👉 What happened: But now, NAB is officially on the up, or at least its profit is. The bank made a quarterly profit of $1.8 billion bucks and it’s sounding pretty upbeat about it.
👉 What else: But perhaps the most interesting part is that NAB reckons more than two thirds of its customers are ahead on their home loans right now.
💡Rising interest rates are making mortgages more expensive, but right now Aussie home owners are an average of almost four years ahead on their loans.
💡Ya see, interest rates dropped from 4.75% in October 2011 all the way to 0.1% in November 2020. This means mortgage holders who continued to pay the same repayments throughout this period were actually getting ahead on their mortgage.
💡 But with interest rates at 1.85% and the Reserve Bank flagging more rises to come, it’ll be interesting to see whether these stats start to change soon.
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