The bank’s net interest margin was slightly lower, though NAB said excluding its markets and treasury income the margin was up slightly, “reflecting the benefit of a rising interest rate environment, partly offset by home lending competition and higher wholesale funding costs”.

McEwan said the business was in good shape for the evolving economic environment. “We have a clear strategy and executing this with discipline is our key priority,” he said.

NAB, alongside the other big banks, raised variable interest rates for home loan customers by 0.5 percentage points last week, passing on the Reserve Bank’s cash rate rise in full. For a $500,000 mortgage, the rise in interest rates is likely to increase monthly repayments by $140 in August, according to RateCity.

Since the RBA began raising interest rates in May, banks’ home loan rates have risen by far more than their rates on deposits, a dynamic that is boosting bank profits while attracting growing scrutiny from politicians and regulators.

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