• Cash earnings up 0.8% vs 2H24, with underlying profit growth and lower credit impairment charges
• Executing on refreshed strategy, driving stronger customer advocacy, speed, simplicity and technology modernisation
• Optimistic about Australian and New Zealand economic outlook, but escalating global trade tensions a key uncertainty

NAB has reported its 2025 half year results, with cash earnings up 0.8% compared to the second half of 2024. This was driven by underlying profit growth and lower credit impairment charges, partially offset by a higher effective tax rate. The bank is making good progress executing on its refreshed strategy, focused on driving much stronger customer advocacy, greater speed and simplicity, and ongoing modernisation of its technology. This is supporting key priorities such as growing deposits, improving proprietary lending, and expanding business banking. The bank is optimistic about the underlying growth outlook for the Australian and New Zealand economies, but escalating global trade tensions are seen as a key source of uncertainty. Against this backdrop, NAB has maintained strong balance sheet settings, with a CET1 ratio of 12.01% and well-progressed term funding for FY25. The bank's performance across its key divisions was mixed, with Business & Private Banking and Corporate & Institutional Banking reporting earnings growth, while Personal Banking saw a decline. Overall, NAB is in good shape and well placed to manage its business for the long term and deliver sustainable growth and attractive returns for shareholders.

For FY25, NAB continues to target productivity benefits of greater than $400 million and expects cost growth to be less than the 4.5% growth seen in FY24.

While the underlying outlook for the Australian and New Zealand economies is improving, elevated global trade tensions are a key source of uncertainty and downside risk. NAB has maintained a prudent approach to provisioning as a result.