National Australia Bank Ltd. reported a modest rise in profit for the third quarter, driven by stronger lending to businesses across the country. The group posted A$1.83 billion in unaudited cash earnings for the three months to June 30, up from the previous period.

The bank’s performance highlights a shift in its business model, as consumer home loan applications fell 15 % in the same quarter. While the decline in retail lending suggests a tougher housing market, the uptick in commercial borrowing signals resilience in the Australian economy.

Analysts note that the bank’s focus on enterprise finance is paying off, with higher-margin loans offsetting lower mortgage volumes. The results also come amid a broader trend of Australian banks tightening credit standards to manage risk.

Overall, National Australia Bank’s earnings growth reflects a balanced strategy that prioritizes profitable business lending over high-volume consumer loans, positioning it well for a gradual recovery in the housing sector.