National Australia Bank expects headwinds next year from rising interest rates and high inflation but says it still expects the economy to grow, albeit at a slower pace.
"It is clear that 2023 will be a year of slower growth than 2022, and challenges will continue to emerge and evolve," Chief Executive Ross McEwan told shareholders at the company's annual general meeting in Melbourne.
"Many of our customers are now facing conditions they may not have experienced for a number of years. Higher inflation, rising interest rates and slower growth are starting to impact both businesses and consumers."
The Reserve Bank of Australia last week lifted its benchmark cash rate for the eighth month in a row to 3.1 per cent, in its battle to rein in rising prices.
The central bank expects inflation to peak at around eight per cent in the current quarter.
Earlier, NAB Chairman Philip Chronican also told shareholders the lender was actively considering the geopolitical landscape and its impact locally, saying next year could be "a little rocky".
Mr McEwan said resilient business conditions and a return to higher levels of migration mean Australia is well-positioned to deal with the headwinds, but warned that New Zealand's business conditions will be worse with interest rate rises slowing that economy down considerably.