NAB is satisfied with its current level of home loan arrears, according to one executive.
National Australia Bank (NAB) has insisted its home loan debt rates do not represent a threat to its profitability, with the financial giant better placed than many of its rivals in the sector.
Speaking to the Australian, NAB personal banking chief Lisa Gray said she was "very comfortable" with arrears on home loans and suggested the lender's consistent pricing between individual customers had been the correct approach to take.
"We're finding that many customers are asking why they had to threaten to leave before they were offered a better deal," she observed. "We get a higher proportion of lower-risk business."
Ms Gray noted that while the wider mortgage market has experienced a contraction over recent months, NAB has continued to grow at more than three times the speed of its closest banking competitors.
A recent report from the Housing Industry Association indicated that home loan lending remains relatively weak, with uncertainty over interest rates deterring some potential buyers.
By Kate Guthrie
