NAB added around 490 new customer facing and operational roles to its business and private banking division last year, a reminder that “simpler” banks – the industry vogue – are inefficient banks.
The bank plans to hire another 60 before the financial year is out for this division.
Overall NAB reported lower operating expenses over the March 2021 half year, producing a net profit of A$3.21 billion, almost double the first half profit in 2020.
“Higher performance-based compensation” along with “growth and COVID-19 support hires” added $238 million to the cost line over the half.
All the new business bankers are pretty busy.
“Our pipeline of new business is significantly higher than last year,” Ross McEwan, the NAB CEO said.
“We are growing business lending market share and our new business transaction account openings are up 16 per cent versus last year.”
In the consumer bank NAB struggled for growth over the last half, with almost no rise in Australian Housing Lending balances ; $310 billion at the end of March.
But the business mix may be working in the bank’s favour: owner-occupied loans lifted from 58.4 per cent of total balances a year ago to 61.4 per cent now. And on a flow basis, owner-occupied loans lifted to 71.3 per cent this half.
Customers paid in advance by one month or more skipped along during the pandemic, from 66.5 per cent to 69.1 per cent.