• Underlying profit up 12% vs 2H25 quarterly average
• Asset quality improved, credit impairment charges down 30%
• Disciplined execution of strategy delivering progress across key priorities

National Australia Bank Ltd (NAB) has reported a strong 1Q26 trading update, with cash earnings 15% higher compared to the 2H25 quarterly average. The key driver was a 12% increase in underlying profit, reflecting growth across each of the bank's customer-facing divisions and a supportive Australian economic environment. Revenue rose 6%, with net interest margin increasing 2 basis points to 1.80%. Expenses were broadly flat, with technology spend and personnel-related costs increases offset by productivity benefits and lower restructuring and remediation costs. Asset quality also improved, with the credit impairment charge down 30% compared to the 2H25 quarterly average. The bank's CET1 capital ratio decreased to 11.48% at December 2025 from 11.70% at September 2025, mainly due to the payment of the 2025 final dividend and RWA growth. NAB continues to execute on its strategy, delivering progress across its key priorities of growing business banking, driving deposit growth, and strengthening proprietary home lending. The bank is well-placed to support its customers and deliver sustainable growth and returns for shareholders.

NAB is targeting productivity savings of more than $450 million for FY26, with FY26 operating expense growth expected to be less than the 4.6% growth seen in FY25.

NAB has started FY26 strongly and is well placed to manage the bank for the long term and support its customers, while delivering sustainable growth and returns for shareholders.