The lender reported half year cash profit of $3.48 billion, a 4.1 per cent improvement from the the same period a year ago.
Statutory net profit for the six months to March 31 was up 10.7 per cent to $3.55 billion, while operating revenue rose 4.6 per cent to $8.83 billion.
Chief executive Ross McEwan said NAB was getting the basics right more consistently and the execution of its strategy was delivering good results.
"This has been achieved during a period of increased customer activity across all divisions of the bank, including the fastest growth in business lending since the GFC," he said in a statement on Thursday.
The gains were driven by strong growth in lending and deposit volumes at its key business banking unit, which saw earnings jump 17.5 per cent on broadly stable margins and a rise in fee income.
Institutional banking as well as the New Zealand unit also saw higher lending volumes, but earnings declined in retail banking amid ongoing competitive pressures in the home loans business, although NAB lifted its market share.
Expenses rose 2.6 per cent, reflecting the hiring of additional staff to support growth, as well as salary increases and investment in technology.
NAB, like its rival ANZ on Tuesday, also walked back from a target of absolute cost reduction by 2025.
"Given the level of growth opportunities and emerging inflationary pressures, we now expect cost growth of two to three per cent in FY22, which includes costs associated with delivering the requirements of our EU with AUSTRAC," Mr McEwan said.
Net interest margin - a key measure of profitability - declined 11 basis points from a year ago to 1.63 per cent, largely on account of the volatility in the markets and treasury portfolio, and higher holdings of liquid assets.
NAB will pay a fully franked first-half dividend of 73 cents a share, a jump from the 60 cents a share it paid for the same period last year.
NAB LIFTS H1 PROFIT
* Cash earnings up 4.1pct to $3.48b
* Net profit up 10.7pct to $3.55b
* Operating revenue up 4.6pct to $8.83b
* Fully franked interim dividend 73 cps vs 60 cents year ago.
