$NAB.AX

Westpac's mortgage loan book fell $14.12 billion in August, with owner-occupier and investor portfolios declining. CBA's housing loans rose $2.60 billion, but growth slowed. NAB and ANZ saw minimal increases. Macquarie grew its book by $1.98 billion, the strongest among major lenders. Mid-tier banks like Bendigo, Suncorp, and HSBC reported declines. Cooling demand due to rate hikes and tax changes contributed to the slowdown.

Australian business lending rose $9.9B in August, reaching $1.28T. CBA saw the largest increase ($2.8B), while NAB remained the top lender. Annual growth for CBA was 15.2%, outpacing NAB's 10.8%. All major banks reported gains, with Westpac and ANZ also growing. Despite challenges like higher interest rates, SMEs are utilizing credit effectively, according to surveys.

The Reserve Bank of Australia (RBA) raised its cash rate to 4.60%, the highest in 13 years, with markets pricing in a potential pause. The RBA's October Financial Stability Review highlights global and structural risks, including leveraged hedge fund activity in sovereign bond markets and cyber threats from AI. The ASX 200 dropped 1.99% following the rate hike.

Australia's Big Four banks (Commonwealth, Westpac, ANZ, NAB) raised variable home loan rates by 0.25% from October, following the RBA's cash rate hike to 4.60%. The RBA cited persistent inflation, now at 4.0% annually, for the increase. The banks hold over 70% of household mortgages in Australia.

CBA, Westpac, ANZ, and NAB raised home loan rates by 25 basis points following the Reserve Bank's increase to 4.6%. CBA and Westpac will also boost deposit rates, while ANZ, NAB, and CBA are reviewing saver rates. Offset account balances remain high, and overdue repayments are low, but analysts warn of potential further rate hikes and economic stress.

NAB expects the RBA to raise rates to 4.60% today, with a possible November hike, supporting AUD short-term. However, NAB warns Australia may ease before other G10 central banks, posing medium-term risks to AUD. Markets are pricing in a 25bp hike, with mixed views on future moves.

Australian mortgage debt has surged to $2.51 trillion, with the Big 4 banks (ANZ, CBA, NAB, Westpac) predicting a 0.25% rate hike to 4.60% in September. RBA governor Michele Bullock noted materializing inflation risks. A rate increase would add $91/month to repayments for a $600,000 loan, totaling $364 since the year's hikes, according to Canstar.

The S&P/ASX 200 Index rose 0.46% to 8,705 points on Monday, led by gains in major banks and healthcare stocks. Commonwealth Bank, NAB, Westpac, and ANZ all saw increases. Northern Star Resources surged 7.69% after rejecting a takeover bid, while other miners like BHP and Rio Tinto fell. The index is still down 3.7% over the past month. The RBA's interest rate decision and inflation data are upcoming key events.

National Australia Bank's Q3 2026 Consumer Sentiment Survey shows cost-of-living stress at its highest since 2014, with 81% of Australians reporting higher living costs. The NAB Consumer Stress Index rose to 60.1, driven by essential expenses like groceries and utilities. Consumers are adapting by prioritizing essentials, seeking value, and managing budgets carefully, supported by resilient employment.

NAB opened a Community Hub in Cairns to connect customers with fraud and financial support teams, addressing rising scam losses. The hub is part of a broader $100M+ branch upgrade plan, with 120 regional locations targeted. NAB invested $10M in Queensland branches this year. Scam losses in Australia rose 7.8% to $2.18B in 2025, per the National Anti-Scam Centre.