National Australia Bank (ASX:NAB) said the business lending balances of its business and private banking (B&PB) division jumped 10% year over year to AU$180 billion in the June quarter from AU$165 billion, according to a Thursday Australian bourse filing.
The division saw the strongest June month since fiscal 2022, the lender said. Home lending balances in the division climbed 6% year over year to AU$115 billion in the quarter from AU$108 billion. However, the value of home lending applications were 9% lower than applications in the prior quarter.
The division's deposit balances increased by 9% to AU$254 billion year over year in the June quarter from AU$233 billion, consistent with seasonal trends.
The ratio of non-performing loans to gross loans and acceptances improved to 2.9% as of June from 3% as of March, the bank said. Watch loans increased 8% over the quarter, reflecting current and potential impacts from a challenging environment.