NAB Q3 Earnings Overview
National Australia Bank (ASX:NAB) posted unaudited cash earnings of A$1.83 billion for the third quarter, representing a 2% rise from the first‑half quarterly average and excluding a large notable item recorded earlier in the year. Statutory net profit climbed 32% to A$1.81 billion, supported by lower credit impairment charges and continued volume growth.
Despite the earnings uplift, the bank highlighted a sharp slowdown in its home‑loan franchise, with applications falling 15% compared with the second quarter. NAB attributed the weaker demand to a more uncertain environment driven by the Middle East conflict, higher domestic interest rates, and recent tax changes announced in the Australian federal budget.
The market reacted negatively, with Sydney‑listed shares dropping 4.1% to A$39.50 by 01:23 GMT on the day of the release. Business lending, however, expanded 2% during the quarter, led by a 4% increase in Business & Private Banking volumes. Total customer deposits rose 2% and revenue grew 2% from the first‑half average, while underlying profit remained broadly stable.
Net interest margin edged down by 2 basis points to 1.79%, although it would have improved if the impacts from Markets & Treasury were excluded. The bank’s capital position stayed robust, with a Common Equity Tier 1 ratio of 11.93%, comfortably above its operating target of more than 11.25%.
Looking forward, NAB reiterated its FY2026 objective of delivering more than A$450 million in productivity savings and indicated that operating expense growth for the year is expected to be lower than the 4.6% increase recorded in FY2025.