The National Australia Bank Ltd (ASX: NAB) share price is in focus after cash earnings rose 2% from the 1H26 quarterly average, excluding large notable items, and the CET1 capital ratio climbed to 11.93%.
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What did National Australia Bank report?
- Cash earnings up 2% vs 1H26 quarterly average (excluding large notable items), to $1.83 billion
- Statutory net profit rose 32% to $1.81 billion
- Revenue grew 2% from 1H26 quarterly average
- Net interest margin decreased 2 basis points to 1.79%
- Operating expenses up 4% (excluding large notable items)
- Common Equity Tier 1 (CET1) ratio improved to 11.93%
What else do investors need to know?
National Australia Bank delivered growth in business banking, with Australian business lending up 2%, including a 4% lift in its Business & Private Banking division. Deposits increased 2%, with strong gains in transaction accounts. The bank also reported that 3Q26 collective provisions to credit risk weighted assets stood at 1.36%, reflecting prudent allowance for potential future stresses.
While business credit growth remained robust, the home lending market softened in 3Q26, with applications down 15% compared to the previous quarter. The ratio of non-performing loans fell, though "watch loans" increased, signalling ongoing caution in the current environment.
What did National Australia Bank management say?
Commenting on the quarter and outlook, Andrew Irvine, NAB CEO said:
NAB's 3Q26 cash earnings increased 2% compared with the 1H26 quarterly average excluding the impact of the Large Notable Item (LNI)(1) in 1H26, primarily driven by lower credit impairment charges (CICs). Underlying profit was stable over the period with good volume growth and well managed margins offset by higher costs which were impacted by seasonality and the flow-on impacts of changes to our software capitalisation policy in 1H26.
Our long term strategy remains focused on achieving much stronger customer advocacy, greater speed and simplicity, and ongoing technology modernisation. This is expected to deliver sustainable growth and attractive shareholder returns.
What's next for National Australia Bank?
NAB expects to continue supporting customers as it navigates a more uncertain environment due to global conflict, higher interest rates, and recent tax changes. The bank is targeting operating expense growth in FY26 to be less than FY25's growth of 4.6%, and productivity savings greater than $450 million for FY26. Management reaffirmed NAB's focus on technology updates and customer experience to help drive sustainable long-term growth.
National Australia Bank share price snapshot
The National Australia Bank share price has had a positive but unspectacular 12 months, slightly underperforming the S&P/ASX 200 index (ASX: NAB) with a 2.8% gain.
