The National Australia Bank Ltd (ASX: NAB) share price is in focus today after the bank delivered a strong start to FY26, with cash earnings climbing 15% and underlying profit up 12% compared to the prior equivalent period.
Image source: Getty Images
What did National Australia Bank report?
- Cash earnings of $2.0 billion for the quarter, up 15% on the prior period
- Underlying profit lifted 12% to $3.1 billion on higher volumes and lower credit impairment charges
- Revenue rose 6% to $5.6 billion, driven by business and personal banking
- Net interest margin increased by 2 basis points to 1.80%
- Operating expenses were broadly flat, as productivity benefits offset higher staff and technology costs
- Credit impairment charge was $170 million, primarily from business and unsecured retail portfolios
What else do investors need to know?
National Australia Bank saw business lending grow by 2%, with its Business & Private Banking division achieving 3% growth and further gains in market share. Home lending outpaced system growth, with proprietary channel drawdowns improving to 46%.
On the customer front, NAB finished migrating Citi Consumer Business customers to its platforms and opened its first NAB Financial Centre in Chatswood. The bank also rolled out programs to improve customer experience, and provided more than $1 million in disaster relief and community grants after recent weather events.
What did National Australia Bank management say?
NAB CEO Andrew Irvine said:
We have started FY26 strongly. Underlying profit rose 12% compared with the 2H25 quarterly average, driven by increases across each of our customer facing divisions and a supportive Australian economic environment. Pleasingly, asset quality outcomes also improved over 1Q26 and we have maintained appropriate balance sheet settings. Disciplined execution of our strategy has delivered further progress this quarter across our key priorities of growing business banking, driving deposit growth and strengthening proprietary home lending. NAB is well placed to manage our bank for the long term and to support our customers, while delivering sustainable growth and returns for shareholders.
What's next for National Australia Bank?
NAB aims to continue growing its business and home lending portfolios while keeping operating expense growth below FY25's rate. The bank is targeting more than $450 million in productivity savings for the full year. Management says the bank remains focused on simple, faster solutions to further improve customer experiences.
Looking ahead, NAB believes its strong capital, funding, and asset quality position will help it support customers and deliver sustainable shareholder returns as markets evolve.
National Australia Bank share price snapshot
Over the past 12 months, NAB shares have risen 15%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
