National Australia Bank stock weighs FY26 profit drop as dividend holds

National Australia Bank reported weaker statutory and cash earnings for the financial year ended September 30, 2026, while preserving its shareholder payout. The results, released on November 5, showed that higher credit impairment charges and large notable items outweighed stronger lending volumes and margins.

National Australia Bank stock traded at 23.89 euros on Lang & Schwarz at 16:35 CET on Wednesday, November 11, 2026.

Credit Costs Weigh On Earnings

According to Investor Daily, statutory profit fell 9.1 percent to 6.14 billion Australian dollars and cash earnings declined 13.4 percent to the same amount. Excluding large notable items, cash earnings were flat at 7.09 billion Australian dollars, while underlying profit increased 6.9 percent on that adjusted basis.

Credit impairment charges rose 85.7 percent to 1.55 billion Australian dollars from 833 million Australian dollars a year earlier. NAB increased forward-looking collective provisions by 403 million Australian dollars as it assessed slower growth, weaker housing conditions, higher interest rates and inflation as rising risks to borrowers.

Revenue increased 5.8 percent to 22.01 billion Australian dollars, supported by higher lending volumes and margins. Net interest margin improved by six basis points to 1.80 percent, although competition in lending limited the benefit. Operating expenses rose 4.5 percent excluding the large notable items, reflecting higher personnel and technology costs as well as continued investment.

Dividend Holds As NAB Resets

NAB declared a fully franked final dividend of 85 Australian cents per ordinary share. Together with the interim payment, the full-year dividend reached 1.70 Australian dollars per share, unchanged from FY25. The bank's shareholder centre lists November 11 as the record date and December 15 as the payment date.

The capital position strengthened during the year. NAB reported a common equity tier one ratio of 11.87 percent at September 30, with a pro forma ratio of 12.07 percent expected after the dividend reinvestment plan. The stronger buffer supports the unchanged payout, but the higher credit charge shows why earnings quality and asset performance remain central for investors.

CEO Andrew Irvine said NAB had delivered underlying profit growth through higher volumes and stable margins, while acknowledging a challenging operating environment. In its full-year results announcement, the bank said lending in Business and Private Banking grew 10.5 percent and deposits increased 6.1 percent. Corporate and Institutional Banking lifted lending by 9.0 percent, while personal banking deposits rose 7.0 percent.

FY27 Execution Becomes The Test

Management expects underlying cost growth below 3 percent in FY27 and plans to keep investment spending at a similar level to FY26. NAB is simplifying its operating model and expects to reduce its workforce by up to 2,500 roles by September 2027. The stated aims are to remove duplication, speed up decisions, strengthen risk controls and focus investment on customer priorities.

The bank's economic outlook calls for slower Australian growth and a gradual rise in unemployment, increasing the importance of disciplined provisioning and cost execution. For investors, the key question is whether stronger business lending and deposit growth can offset credit losses and the operational burden of the restructuring plan.

Australia's banking sector is covered through the S&P/ASX 200 market overview.

Further developments on the dividend timetable, earnings outlook and operating-model changes can be found in More news and analyses on National Australia Bank stock.