• Revenue grew 3%, with 4% growth excluding Markets & Treasury income
• Net interest margin increased 8 basis points, or 4 basis points excluding Markets & Treasury
• Expenses rose 3% due to higher personnel costs and technology spend, partly offset by productivity benefits

NAB's 2025 third quarter trading update highlights a 2% increase in underlying profit compared to the first half 2025 quarterly average. This was driven by a 3% rise in revenue, with a 4% increase excluding Markets & Treasury income, reflecting higher margins and volume growth. Net interest margin increased 8 basis points, or 4 basis points excluding Markets & Treasury, primarily due to higher earnings on replicating portfolios and lower short-term funding costs. Expenses rose 3%, mainly from higher personnel-related costs, including payroll remediation, and increased technology spend, partially offset by productivity benefits and lower customer remediation costs. Credit impairment charges increased to $254 million, up from $81 million in the previous quarter, primarily due to a net collective provision release in the prior quarter that did not repeat. The bank's capital position remains strong, with a CET1 ratio of 12.14% at June 2025. NAB continues to focus on executing its strategy, improving efficiency, and supporting its customers and communities, including through branch refurbishments, payment innovations, and disaster relief grants.

NAB expects FY25 operating expense growth of approximately 4.5%, including costs associated with a program to identify, rectify and remediate payroll issues currently estimated at $130 million in FY25.

NAB remains optimistic about the outlook and is well placed to manage the bank for the long term and deliver sustainable growth and returns for shareholders.