Clearly NAB wants to increase its share of the Australian mortgage market. After the other majors – Westpac, CBA and ANZ – each lifted mortgage rates by around 15 basis points over the past fortnight, NAB has left rates unchanged. From The Australian:
…at 5.24 per cent NAB will have the lowest advertised standard variable home loan rate.
This compares to Westpac at 5.38 per cent, CBA at 5.37 per cent and ANZ at 5.36 per cent…
NAB has 15.5 per cent of the home loan market – the same as ANZ behind CBA at 25.5 per cent and Westpac at 24.5 per cent.
The bank is also under fire at the royal commission and last week copped a writ from ASIC over charging fees for no service.
NAB chief Andrew Thorburn is meeting with his top 50 bankers this morning to explain the rate move, which he is selling as a definitive moment for the bank.
“We are listening and acting differently,” he said in a statement. “We need to rebuild the trust of our customers, and by holding our NAB standard variable rate longer, we help our customers for longer.”
“By focusing more on our customers, we build trust and advocacy, and this creates a more sustainable business.”
The market is clearly unimpressed, sending NAB’s shares down nearly 1%:
