National Australia Bank reported an 8.8% year-over-year rise in profit to $7.7 billion for FY23 ended Sept. 30, despite challenges such as inflationary pressures, monetary policy tightening, and increased delinquencies.

The bank's net interest margin increased to 1.74%, reflecting improved earnings and deposits amidst rising interest rates.

The lender also noted a 5.6% rise in expenses, attributed to higher personnel costs and technology investments.

The bank's CEO, Ross McEwan, acknowledged the evolving economic landscape, emphasising tempered growth in the housing sector and increased provisions for potential loan losses.

NAB declared a final dividend of 84 cents per share, higher than a prior-year dividend of 78 cents per share. Together with an interim dividend of 83 cents per share, the bank's total dividend for FY23 rose to $1.67 per share, up from the $1.51 per declared in FY22.

Following the RBA's rate hike, NAB was the first bank to raise interest rates on its variable home loans by 25 basis points on Wednesday afternoon.