Lower fees may lift NAB profits in 2011

National Australia Bank provided a couple of metrics on the benefit to its business from its repricing of common transaction accounts - mainly by eliminating nuisance penalty fees. The bank began its public relations push on the initiative this time last year and the new fees took affect around October 2009.

In an interview with the Financial Review Lisa Gray, NAB's personal banking group executive, said the bank opened 154,000 net new transactions accounts between October and the middle of July. This was 46 per cent more than the same time last year.

She said customer numbers are up six per cent compared with July last year.

Gray also said that most of the growth in home loans over the last year at NAB came through the brokering channel rather than through branches.

NAB now owns several mortgage broking aggregators including PLAN and Fast.

Gray said it would take until 2011 for financial returns to flow from the bank's pricing initiatives.