NAB FY25 earnings: Cash earnings steady, dividend rises

NAB delivered flat FY25 cash earnings, a modestly higher dividend, and strong deposit growth while investing in customer experience and technology.

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Key points

  • National Australia Bank reported flat cash earnings of $7,091 million for FY25, with a slight dividend increase to 232 cents per share and a robust CET1 ratio of 11.7%.
  • NAB prioritised funding lending growth through increased customer deposits and investing in technology and AI to enhance customer experiences, despite a 4.6% rise in operating expenses.
  • With anticipated economic improvement, NAB aims to control costs, advance digital transformation, and focus on business banking, lending growth, and sustainability targets in FY26.

The National Australia Bank Ltd (ASX: NAB) share price is in focus today after the bank posted a steady full-year result, with FY25 cash earnings coming in at $7,091 million and the dividend rising slightly to 232 cents per share.

What did National Australia Bank report?

  • FY25 cash earnings: $7,091 million, flat year on year
  • Statutory net profit: $6,759 million, down 2.9% from FY24
  • Final dividend: 232 cents per share, up from 229 cents (FY24)
  • Cash return on equity: 11.4% (FY24: 11.6%)
  • Common Equity Tier 1 (CET1) ratio: 11.7%, above target
  • Customer deposits: $658.4 billion, up from $610 billion

What else do investors need to know?

NAB finished the year with a strong balance sheet and continued to fund lending growth mainly through customer deposits. The bank remains focused on business banking, deposit growth, and strengthening its proprietary home lending, while embracing technology and AI to improve customer and colleague experiences.

The group's operating expenses increased 4.6% over the year, which included payroll remediations and more investment in technology and security. Asset quality was generally stable, with non-performing loans improving modestly in the second half.

What did National Australia Bank management say?

Andrew Irvine, NAB Group CEO, said:

We continued to deliver on our customer-focused strategy, investing in our people, technology, and capability to help deliver better outcomes for customers and sustainable growth for the bank.

What's next for National Australia Bank?

Looking ahead, NAB expects the Australian economy to continue gradually improving, with business and housing credit growth forecast for FY26. The bank aims to keep costs under control, complete key technology programs—including migration of the acquired Citi Consumer Business—and maintain prudent capital settings. Focus areas for the coming year remain on business banking leadership, driving deposit growth, and lifting returns from home lending.

NAB also continues to prioritise digital transformation and AI adoption, cyber security, and sustainability initiatives—setting expanded targets for affordable housing and climate commitments.

National Australia Bank share price snapshot

NAB shares have risen 13% over the past 12 months, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen around 8% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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