Falling margins across most of its divisions dragged down the second half profit for National Australia Bank. Net profit over the half year to September 2023 fell 13 per cent to A$3.45 billion, relative to the first half. Even the pre-provision profit fell 10 per cent to $5.5 billion. Over the full year to September, the pre-provision profit increased 16 per cent, while the net profit increased eight per cent to $7.4 billion. Over the half year the net interest margin fell six basis points to 1.71 per cent, while over the full year the NIM lifted nine bps to 1.74 per cent. The cash profit of NAB’s personal banking division fell nine per cent over the full year to $1.44 billion, and fell 16 per cent over the half year to $661 million. Cash profit fell in each division over the second half, down six per cent in business and private banking, and down 16 per cent in New Zealand. Reflecting the intensity of mortgage competition this year, the NIM fell most heavily for the bank in personal banking, down 21 bps to 1.87 per cent over the second half, while in B&PB, the NIM fell 18 bps to 3.09 per cent over the half. The weaker profit trends were matched by an expected deterioration in asset quality. Loans 90 days or more past due increased to 0.76 per cent at September 2023, up from 0.67 per cent. This is still well below the 2021 Covid peak. In NSW, mortgage loans more than 90 days past due were 1.18 per cent. Loans 30 days or more past due increased 1.41 per cent from 1.22 per cent. In NAB’s Australian business book, loans more than 90 days past due lifted to 0.96 per cent from 0.87 per cent. CEO Ross McEwan told an investor briefing around 10,000 mortgage customers had their facilities restructured.