National Australia Bank (NAB) investor relations material

Executive summary

• Third quarter saw a significant decline in Australian home lending applications, with a 15% drop compared to the previous quarter and 16% year-over-year.

• Cash earnings for 3Q26 rose 2% compared to the 1H26 quarterly average (excluding large notable items), driven by lower credit impairment charges and stable underlying profit despite higher costs.

• Revenue increased 2% versus 1H26 quarterly average and 5% year-over-year, with business lending and deposit growth as key contributors.

• Business and private banking asset quality remained stable, with non-performing exposures as a percentage of gross loans and advances (GLAS) slightly improving sequentially.

• Australian retail asset quality showed housing 90+ days past due (DPD) at 1.01% of GLAS, indicating limited impairment.

Financial highlights

• Unaudited statutory net profit for 3Q26 was $1.81bn, up 32% versus 1H26 quarterly average and up 4% year-over-year.

• Cash earnings reached $1.83bn, up 2% compared to 1H26 quarterly average and up 4% year-over-year.

• Home lending applications fell 15% quarter-over-quarter and 16% year-over-year.

• Investor lending applications decreased 17% and owner-occupier applications dropped 14% sequentially.

• Net interest income was $4.6bn, up 1% sequentially; net operating income rose 2%.

Outlook and guidance

• Housing system credit growth forecasted at 2.5% for FY27, down from 6.7% in FY26.

• Australian GDP growth expected to be 1.5% in CY26 and 1.9% in CY27, with unemployment rising to 4.8% by CY27.

• New Zealand GDP growth projected at 1.5% in CY26 and 2.8% in CY27, with unemployment peaking at 5.5% in CY26.

• Productivity savings of more than $450 million targeted for FY26.

• FY26 operating expense growth expected to be less than FY25's 4.6% growth, excluding large notable items.