NAB reported unaudited cash revenue of $1.75 billion for the third quarter of the 2024 financial year.

In a statement to the ASX on Friday, it said cash earnings were down 0.2 per cent on the first half of 2014 average, while statutory net profit came in at $1.9 billion.

The bank explained that revenue fell 1% in the three months to 30 June 2024, although excluding markets and treasury income, the figure rose 1%, reflecting volume growth and higher other operating income including lending fees.

Net interest margin (NIM) was "stable", it said, with small reductions from lending competition and the deposit mix offset by the benefits of a higher interest rate environment.

Expenses also rose 1%, mainly reflecting higher payroll-related costs, partially offset by productivity benefits.

However, NAB also emphasized its focus on future productivity savings, setting a target of approximately $400 million in FY2023-24, with the expectation that spending growth in FY23-24 will be lower than in FY22-23.

Chief executive Andrew Irvine said that while NAB's strategy had served the bank well in recent years, its strategic priorities would focus more on delivering better customer service and simplifying operations.

"Our result reflects a more stable work environment and benefits," he said.

“Our strategy has served us well in recent years. As we build on this progress, our strategic priorities will evolve, including an increased focus on delivering better customer service and removing complexity at NAB."

Irvine acknowledged that the economic environment, including persistent inflationary pressures, remains "challenging" for customers.

“While most clients are proving resilient, we unexpectedly saw asset quality deteriorate further in 3Q24. It is essential to keep our customers and our bank safe,” he said.

The bank's credit impairment charge was $118 million, mainly reflecting further deterioration in asset quality across the group.

The ratio of non-performing exposures to gross loans and acceptances increased by 11 basis points from March 2024. to 1.31%, mainly reflecting the continued broad-based deterioration of the business and private banking credit portfolio, coupled with higher arrears for the Australian mortgage portfolio.

He added that the ratio of gross impaired assets to gross loans and acceptances remained unchanged at 0.15 percent.

In June, Oxfam accused NAB of pocketing $1.1 billion in "crisis profits" in 2022. and $1.6 billion in 2023.

"Australia's second largest lender, National Australia Bank, has been able to ride the wave of the Reserve Bank's 13 rate hikes since May 2022 to boost its profit margins alongside its big four peers, while many were struggling with their rising mortgage payments,'' the report claimed.

The organization also accused Australia's top 500 corporations of making $98 billion in crisis profits since the start of the decade and called for a "tax on crisis profits" to discourage price gouging.