Comment:   Look past the market reaction yesterday to NAB’s lower-than-expected net interest margin for the March 2023 half year, and what that might mean for future sector profits. NAB is pretty much humming (so far as a big bank can). National Australia Bank’s results for the March 2023 half year are noteworthy for consistency: NAB’s profits are bounding along. This is as you would expect in a rising rate environment (as is the case in Australia since May 2022). Underlying profit leapt 18 per cent to A$6.1 billion in the first half. This rate of increase is echoed in the rise in the bank’s statutory net profit, at $4.0 billion over the six months to March. And why not?  Revenue was up 20 per cent over one year and by 11 per cent over six months. NAB’s growth rates on revenue and profits over the last year are twice as pacey as those of its peers (on APRA data current to December). NAB continues to report a cash profit. On this occasion, this profit lifted more slowly, by 12 per cent, to $4.1 billion over the half. And for once the cash profit was virtually the same as the actual net profit. Expenses increased by 11.6 per cent at the bank over a year. “Excluding the impact of the Citi consumer business, expenses rose 6.3 per cent [over the full year] with key drivers including salary increases, continued investment in technology capabilities and compliance and remediation including activities under the terms of the enforceable undertaking with AUSTRAC,” the bank said.  The approaching conclusion of the Ross McEwan era at the bank is being defined by a deft, if defiant, pulling of the levers on the profit engines that are the essence of the bank. Underlying profit of the Corporate and Institutional Banking division NAB said rose by 20 per cent, making it one of the best performing wings of the bank and not for the first time. The profit of business and private banking increased 15 per cent and you might question why it isn’t surging by more, given so many favourable tailwinds. Personal banking’s profits lifted 10 per cent, and the runaway costs and difficulties with the integration of 86 400 into ubank (and also Citi in the wider NAB group) are dilemmas the bank is yet to fully resolve. NAB has thrown stacks of resources and talent at the problematic project to transition the legacy ubank client list to the 86 400 platform acquired from Cuscal in May 2021. This is supposed to be cleared up over the next three months, with 75 per cent of ubank’s list migrated to the new platform so far. Well under control, by contrast, is the NAB dividend. NAB will pay 83 cents per share this half, up 10 cents per share for the dividend this time a year ago. The NAB dividend is a reminder of the bank’s and the Australian cartel’s resolve to restore and maximise dividend payout ratios, thus mitigating pandemic-era curbs. Aside from fidelity to the dividend, what else can be said