The head of Australia's biggest business bank is alert to the risks of a weaker Chinese economy following the US presidential election, after Donald Trump threatened to impose hefty tariffs.
But while a second Trump presidency posed risks there were also opportunities, National Australia Bank CEO Andrew Irvine said after announcing the entity's full-year results, which reflected a fall in cash profit.
"We saw a lot of US indices increase (after the Republican runner's victory) ... the US dollar strengthened, stock markets rose and it's good for the world when America is strong," he told reporters on Thursday.
Mr Trump has plans for extensive US tariffs on Chinese imports and has threatened to extend the trade penalty to goods from other countries.
Mr Irvine said if the tariffs go ahead there were negative implications for the global economy and Australia.
"There's no doubt, I think, that will be disruptive to global trading patterns," he said.
"Australia is a trading nation and some of our commodities and manufactured goods, as well as services, will be impacted."
While the big four bank boss worries about the prospect of a trade war between the US and China, he's hopeful "the rhetoric is bigger than what we actually see".
The steep tariffs flagged during Mr Trump's campaign could slow the Chinese economy, weighing on the fortunes of Australian businesses that send their goods to the world's second-largest economy.
However, Mr Irvine said the bank's business customers had made efforts to diversify into other markets over the past four or five years, which boded well for their resilience.
Further stimulus by the Chinese government could also offset the impact of US tariffs.
"That doesn't mean it will be without impact. We'll have to see," Mr Irvine said.
NAB reported a cash profit of $7.1 billion cash for the year ended September 30, down 8.1 per cent from the prior corresponding period, landing broadly in line with analyst expectations.
The bank lifted its final dividend to 85 cents a share, from 84 cents a year ago.
Its net interest margin, a key metric of loan profitability, fell three basis points to 1.71 per cent, reflecting "home lending competition, higher term deposit costs and deposit mix impacts".
Costs were higher, up 4.5 per cent, driven by staffing costs and continued investments in upgrading technology and protecting against fraud and cyber security.
Mr Irvine said NAB was observing a similar trend to rival Westpac on mortgage stress, with the number of customers seeking hardship support starting to plateau after peaking mid-year.
"We're at the toughest point in the economic cycle right now, and customers have gotten through it," he said.
The banking boss sees "light at the end of the tunnel" for households, with NAB's economic team forecasting the central bank to cut interest rates in February or March as federal tax relief continues to support incomes.
