National Australia Bank (NAB) H1 2026 earnings summary

Executive summary

• Underlying profit grew 6.4% year-over-year, supported by stable margins and strong balance sheet momentum, excluding large notable items and a significant software amortisation charge.

• Cash earnings rose 7.1% year-over-year excluding notable items, while statutory net profit declined 18–19.3% due to a $1,347m pre-tax ($949m after-tax) software amortisation charge.

• Interim dividend of 85 cents per share, fully franked, with a 1.5% DRP discount and partial underwrite to raise ~$1.8bn in capital.

• Customer advocacy and satisfaction improved, with positive NPS across all segments and recognition as Major Bank of the Year 2025.

• Customer-centric strategy and technology modernisation are driving improved experiences and operational resilience.

Financial highlights

• Underlying profit (ex-notables) up 6.4% year-over-year to $5,852m; cash earnings (ex-notables) up 7.1% to $3,588m.

• Statutory net profit: $2,750m, down 18–19.3% year-over-year due to the software amortisation charge.

• Net interest income rose 8.5% year-over-year to $9,163m; net operating income up 5.9% to $10,870m.

• Net interest margin improved by 11 bps year-over-year to 1.81%; credit impairment charge increased to $706m, up $221m half-on-half.

• Cash ROE (ex-notables) at 11.6%; basic cash EPS (ex-notables) 117 cents.

Outlook and guidance

• Outlook remains highly uncertain due to inflation, higher rates, and Middle East conflict; economic growth expected to slow to 1.5% in 2026.

• Business and housing credit growth forecast to moderate in 2H26; RBA expected to remain vigilant on inflation.

• Productivity benefits targeted at >$450m for FY26; cost growth expected below prior year’s 4.6%.

• Pro forma CET1 ratio expected to be 12.05% post-DRP and underwrite.

• Focus on prudent balance sheet settings, disciplined cost management, and continued investment in technology and AI.