NAB Q3 Trading Update: Stable Earnings Amid Market Challenges
Key points
- Cash earnings increased 2% excluding a large notable item from 1H26
- Underlying profit stable with good volume growth
- Australian business lending rose 2%, home lending grew in line with system
- Deposit balances rose 2%, with B&PB transaction account balances up 3%
- Challenges include Middle East conflict, higher domestic interest rates, and tax changes
Full summary
National Australia Bank (NAB) reported a 2% increase in cash earnings for the third quarter of 2026, excluding a large notable item from the first half of 2026, primarily due to lower credit impairment charges. Underlying profit remained stable, with good volume growth and well-managed margins, despite higher costs impacted by seasonality and changes in software capitalisation policy. Australian business lending rose 2%, and home lending grew in line with the system, excluding the Advantedge run-off. Deposit balances rose 2%, with a 3% increase in Business & Private Banking transaction account balances. The bank faces challenges from the Middle East conflict, higher domestic interest rates, and recent tax changes, which are creating uncertainties for customers.
Guidance
NAB targets productivity savings of more than $450 million for FY26 and operating expense growth to be less than FY25 growth of 4.6%
Outlook
NAB remains focused on achieving stronger customer advocacy, greater speed and simplicity, and ongoing technology modernisation to deliver sustainable growth and attractive shareholder returns.
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