National Australia Bank’s new business banking chief, Andrew Auerbach, believes Australia is better positioned for long-term growth than his native Canada, citing optimism, entrepreneurial momentum and comparatively strong economic fundamentals. Speaking less than six months into the role, Auerbach said Australia stands out as global diplomacy and trade settings continue to shift, as reported in The Australian.
Recruited last year by NAB chief executive Andrew Irvine, also a Canadian and former colleague at Bank of Montreal, Auerbach stepped into the role after Rachel Slade’s departure. Since relocating, he has settled in Melbourne and says the transition has been smooth. Australia, he notes, feels familiar: the business culture, banking system and customer mindset closely resemble Canada’s, but with a stronger sense of opportunity.
After more than two decades at Bank of Montreal, Auerbach brings deep international banking experience to Australia’s largest business lender. He says recent visits back to Canada highlighted a contrast in sentiment. While both countries face high housing costs and supply constraints, Australia’s business owners display greater confidence and entrepreneurial drive.
That optimism, however, is tempered by structural challenges, particularly housing affordability. Auerbach echoed NAB leadership’s call for reform, pointing to lengthy planning and approval processes as a key constraint. One developer, he said, told him approvals were taking longer than construction itself, underscoring bottlenecks that weigh on supply and labour mobility.
Against this backdrop, NAB announced in October a $30 billion allocation to property and residential developers, a move aimed at supporting supply while competing with private credit lenders increasingly active in the sector. The strategy comes amid subdued returns in home lending and intensified competition from major rivals.
Auerbach says NAB is responding by being selective rather than aggressive. The bank is walking away from deals where risk-adjusted returns fall short, supported by more regimented pricing, enhanced analytics and tighter risk controls. These investments have helped cut turnaround times on complex business loans by 20 per cent over two years, while lowering costs for small business customers through digitisation.
The approach appears to be paying off. NAB added $11.3 billion in new business loans last financial year, lifting profits 1.6 per cent to $5.29 billion. While analysts continue to warn about slowing credit growth and competition, Macquarie recently upgraded its outlook for the sector, naming NAB as best placed due to strong book growth and resilient asset quality.
For Auerbach, Australia’s appeal ultimately comes down to confidence. In a changing global order, he argues, the country’s stability, openness and depth of entrepreneurial talent make it an attractive place to invest, and to build a banking strategy for the next decade.
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