Compared to March 2020, NAB's March 2021 half-year results showed an increase in collective provisions by 18.4% to $808 million.

According to NAB's report, net collective provisions consisted of $588 million "raised for targeted sectors impacted by COVID-19 including aviation, tourism, hospitality, entertainment, retail trade, commercial property and higher risk mortgages."

However, provisions are down compared to September 2020's half-year report, with the big four bank seeing improvements in mortgage and lending delinquencies. 

On Tuesday, APRA deputy chair John Lonsdale said there was no evidence of a decline in lending standards.

In the quarter to December 2020, the prudential regulator reported that "LVRs greater than or equal to 80% increas[ed] to 42% in the December 2020 quarter from 39.9%, likely reflective of an increase in first-home buyer activity".

The same report also showed loans with debt-to-income ratios above 6-times increased 0.9 percentage points to 17.2% over the same period.

NAB chief executive Ross McEwen said a part of the economic recovery lies in the success of the vaccine rollout.

"The recovery is not even, and some customers such as those in international travel and hospitality, particularly in CBD areas, still face significant challenges," he said.

"Longer term outcomes for these customers depend on a number of factors expected to become clearer in coming months. These include the impact of JobKeeper ending, timing of the vaccine rollout, and the reopening of international borders." 

Moody's Investors Service vice president Frank Mirenzi said NAB's overall results were a positive.

"Australia’s strong economic recovery, which is building momentum for loan growth, underlines a more positive outlook for revenue growth in the second half," he said.

"A very strong capital position, along with large loan loss reserves, reflects the strength of the balance sheet even as the risk of bad loans begins to recede.”

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

VariableMore details
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
VariableMore details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 11, 2023. View disclaimer.

Term deposits lose steam

Total customer deposits also increased 1.6% since September 2020 to $475.8 million, and NAB says this was largely due to "government and central bank stimulus measures in response to COVID-19". 

"On demand deposits" or savings accounts increased by $4.6 billion compared to September, offset by term deposits falling by $3.2 billion.

Approximately $500 million extra worth of customer deposits earned no interest compared to September 2020.

Below you can compare a range of big four bank term deposits.

Provider

At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

Term Deposit Special ($5,000 - $1,999,999) - 12 months

    Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

    Advance Notice Term Deposit - 12 months

      Monthly, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

      Term Deposit special ($5,000 to $5,000,000) (interest paid at maturity)

        Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

        Term Deposit ($5000-$499999) - 12 months

          Important Information and Comparison Rate Warning

          All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of December 11, 2023. View disclaimer.

          Photo by CDC on Unsplash





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