The National Australia Bank has announced a $1.8 billion cash profit in the third quarter.

The bank said its unaudited cash profit rose 6% over the third quarter from the same time a year ago, as it benefited from an increase in home and business loans as well as higher interest rates.

"As the economy changes, continued low unemployment and healthy household and business balance sheets are helping mitigate the impacts of higher inflation and higher interest rates," said NAB Chief Executive Ross McEwan.

NAB shares have slid just over 3% following the announcement.