National Australia BANK Limited Overview
NAB is Australia's largest business bank. It is the third-largest of the four domestic majors by market capitalisation and the second- or third-largest by earnings, depending on period. Its franchise is anchored in SME, agribusiness, commercial and private banking. These areas generate the largest single share of group cash earnings (Business & Private Banking: A$3.33bn of A$7.09bn in FY25). The franchise is complemented by a mid-tier mortgage book that management is deliberately re-weighting towards proprietary channels. A returns-focused Corporate & Institutional Bank and BNZ in New Zealand complete the group. Since the FY19 Royal Commission fallout, NAB has exited wealth management and life insurance and has refocused on core banking. Under CEO Andrew Irvine (from April 2024), the strategy centres on three priorities: business banking growth, deposit growth and proprietary home lending, all underpinned by a customer-advocacy programme and technology simplification. FY26 to date has been shaped by Middle East conflict-driven provisioning, a A$1.35bn software write-down, a A$1.8bn capital raise and a re-tightening RBA cycle (cash rate 4.60%).
What the company does
NAB is a full-service commercial bank. It takes deposits, extends credit and provides transaction, payments, markets and wealth-adjacent services to consumers, small and medium enterprises, corporates, institutions and governments in Australia and New Zealand. It also has offshore branches serving cross-border clients in London, New York, Singapore, Tokyo, Hong Kong and Shanghai.
Company's own description (paraphrased from the 2025 Annual Report and FY25 Results Summary)
NAB states its purpose as being the most customer-centric company in Australia and New Zealand. Its "strategic ambition" framework sets out where it will grow:
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Business & Private Banking: "clear market leader".
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Corporate & Institutional Banking: disciplined growth.
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Personal Banking: deepening customer relationships.
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BNZ: personal and SME growth.
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ubank: customer acquisition.
It also defines what NAB intends to be known for: relationship-led banking, exceptional experiences, and being safe and sustainable. The FY25 Results Summary frames the strategy as delivering stronger customer advocacy, greater speed and simplicity, and ongoing technology modernisation. These support three key priorities: growing business banking, driving deposit growth and strengthening proprietary home lending.
Business and revenue model
| Revenue component (FY25, cash basis) | AUD Mn | % of net operating income |
|---|---|---|
| Net interest income | 17,398 | 83.6 |
| Other operating income | 3,415 | 16.4 |
| Net operating income | 20,813 | 100.0 |
NAB earns the overwhelming majority of its revenue from net interest income (NII). This is the spread between lending yields and funding costs, including deposit and capital "replicating portfolio" earnings. The remainder is other operating income: fees and commissions, card and merchant income, markets trading (FX, rates, credit), treasury income, and wealth/brokerage income such as nabtrade and JBWere.
Source: NAB 2025 Full Year Results Summary, Group performance table.
Product / service / subscription / licensing mix: These categories do not map cleanly onto banking. In the closest analogues:
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Spread income on balance-sheet products (loans and deposits) ≈ 84%.
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Fee and service income (transaction accounts, merchant acquiring, cards, trade, guarantees, advisory) is part of the ~16% other income.
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Markets and treasury income is part of other income and is volatile.
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There is no material licensing revenue.
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Recurring account-keeping and merchant terminal rental fees are the nearest "subscription-like" lines. These are not separately disclosed.
Value-chain position
NAB is a balance-sheet intermediary at the centre of the Australian payments and credit value chain:
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It originates credit through proprietary bankers, digital channels, brokers (mortgages) and the Advantedge white-label book, which is now in run-off.
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It funds itself chiefly with customer deposits. Deposits funded 84% of total lending at September 2025.
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It supplements this with wholesale term funding across global markets: A$19.6bn issued in 1H26, including A$3.7bn of Tier 2 capital.
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It is a direct participant in the NPP, BECS, eftpos and card schemes.
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It acquired Banked (Pay by Bank / account-to-account orchestration) in May 2026 to own more of the merchant-payments layer.
Customer types and end-markets
| Customer segment | Served by | Notes |
|---|---|---|
| SME and mid-market business, agribusiness, health, professional services, property | Business & Private Banking (B&PB) | Core franchise; NAB holds leading business-lending share |
| High-net-worth / private clients | B&PB (JBWere, NAB Private Wealth) | Advice, investment, private banking |
| Mass-market consumers | Personal Banking, ubank | Mortgages, deposits, cards, personal loans |
| Large corporates, institutions, financial sponsors, governments | Corporate & Institutional Banking (C&IB) | Lending, markets, transaction banking, DCM, specialised finance |
| NZ consumers, SMEs, agri, corporates | BNZ (New Zealand Banking) | Full-service bank in New Zealand |
Independent characterisation
NAB is best understood as a business-bank-led universal bank with structurally higher commercial-credit beta than CBA or Westpac. Its earnings are more sensitive to SME credit cycles and to deposit-replicating portfolio yields. They are less sensitive to mortgage price wars than a mortgage-heavy peer. The FY25–FY26 period shows both sides of this exposure:
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Business-lending growth and deposit gathering drove underlying profit up 6.4% half-on-half ex-LNI in 1H26.
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Individually assessed charges rose: A$964m in FY25 and A$541m in 1H26. Forward-looking provisions were topped up by A$300m for Middle East-related stress concentrated in fuel-sensitive sectors.
The group runs a cost-to-income ratio in the mid-to-high 40s. That is better than ANZ/Westpac historically but worse than CBA. Its cash ROE of ~11–12% sits below CBA's 14.0% (FY26) and roughly in line with Westpac.
Strategy
Stated strategy themes (FY25 Annual Report / FY25 and 1H26 Results)
Purpose: to be the most customer-centric company in Australia and New Zealand.
Three key priorities: grow business banking, drive deposit growth, strengthen proprietary home lending.
Enablers: much stronger customer advocacy (NAB Customer Voices); greater speed and simplicity; technology modernisation, including an AI-ready architecture; prudent balance-sheet settings.
"What we will deliver": leading customer advocacy, strong returns, winning in market, customer-obsessed colleagues, and being simple, fast and resilient.
Values: customer obsessed; win together; keep it simple; move with speed; own it.
Strategic initiatives register (last 24 months)
| Initiative | Date | Description / target | Status |
|---|---|---|---|
| NAB Customer Voices | FY25 → | Systematic NPS capture and response programme | Embedded in more than half of priority frontline teams by 1H26. Medium & Large Business NPS +16 points to equal-first; Mass Consumer NPS +5 |
| New business lending platform | FY25 | Digital origination for bankers | More than 80% of 1H26 applications digital; time-to-yes down ~20% since FY22 |
| Proprietary home lending push | FY25–26 | ~270 new proprietary lenders onboarded in FY25 | Proprietary drawdowns 38% (FY24) → 41% (FY25) → 47.7% (1H26) |
| Deposit franchise rebuild | FY25–26 | Branch reinvigoration, Saturday openings, onboarding improvements | FY25 deposits +7.4%; B&PB/PB transaction-account balances +8% in 1H26 |
| Product rationalisation | Since FY22 | 27% fewer products (1H26 vs FY22); ~500 legacy applications decommissioned since Oct 2023 | Ongoing |
| Technology modernisation and simplification | FY25–27 | Core platform modernisation, AI deployment; ELT re-shaped (Technology & AI; Transformation & Operations) | Ongoing; software capitalisation policy reset in 1H26 |
| Productivity programme | FY25–26 | A$420m benefits in FY25; FY26 target above A$450m | 1H26 delivered A$199m |
| Cost guidance | FY26 | Cost growth below 4.6% ex-LNI | Tracking (3Q26 noted seasonal and software-policy pressure) |
| Investment spend | FY25 | A$1.8bn (FY24 A$1.6bn) | Ongoing |
| Payments innovation / A2A | 2024–26 | Pay by Bank via Banked; industry payment portals; Amazon.com.au checkout | Banked acquired 14 May 2026 |
| AI | 2,026 | Founding partner of the Federal Government's "Buy Australian AI Partnership" (27 Aug 2026); AI for Business masterclass with the National AI Centre | Ongoing |
| Fraud and scams | 2025–26 | 24/7 Fraud Assist; real-time card fraud SMS; push for a National Economic Crime Strategy (Jun 2026) | Ongoing |
| Housing affordability | FY25 → 2030 | A$60bn financing ambition to address housing affordability by 2030 (A$6.9bn delivered over three years to FY25) | Ongoing |
| Environmental finance | → 2030 | A$80bn environmental finance ambition; A$10.4bn delivered in FY25 | Ongoing |
| Balance-sheet resilience | Apr–Jul 2026 | A$300m forward-looking provisioning top-up; ~A$1.8bn DRP raise | Completed |
Medium-term financial targets and guidance
| Target | Value | Source |
|---|---|---|
| CET1 operating target | >11.25% | FY25 and 1H26 Results |
| Dividend payout ratio | 65–75% of cash earnings (Board discretion) | FY25 and 1H26 investor presentations |
| FY26 productivity | >A$450m | 1H26 Results |
| FY26 cost growth (ex LNI) | <4.6% | 1H26 Results |
| ROE / EPS targets | No explicit numeric ROE target disclosed | — |
Products & Services
Pricing is not disclosed in filings as a "pricing model". Banking products are priced via interest rates and fees published in product terms, Target Market Determinations and fee schedules. Launch years are given only where publicly confirmed.
Personal Banking (Australia)
| Product / brand | Description | Target customer | Pricing model / notes |
|---|---|---|---|
| NAB Classic Banking | Everyday transaction account with no monthly account fee (NAB website) | Mass retail | Fee-free base; other fees apply |
| NAB Reward Saver / iSaver (savings) | Bonus-interest and online savings accounts | Retail savers | Variable interest. NAB lifted savings rates in Feb 2026 (NAB release, 13 Feb 2026) |
| NAB Term Deposit | Fixed-term deposits | Retail / SMSF | Fixed rate by term |
| Tailored variable rate with offset | Flagship owner-occupier and investor variable mortgage with 100% offset | Home buyers / refinancers | Variable rate plus package options |
| Base Variable Rate home loan | No-frills variable mortgage | Price-sensitive borrowers | Variable rate |
| Tailored fixed rate | Fixed-rate mortgage | Borrowers wanting certainty | Fixed rate by term |
| NAB Qantas Rewards cards | Frequent-flyer credit cards | Affluent / travel | Annual fee plus interest |
| NAB Rewards cards | Points-based credit cards | Retail | Annual fee plus interest |
| NAB Low Rate / Low Fee cards | Low-cost credit cards | Value seekers | Low rate or low fee |
| Ready Credit (redesigned) | Revolving product, redesigned as a credit card from 25 Aug 2025 (NAB Debt Investor Update, Aug 2026) | Retail | — |
| Personal loans | Secured / unsecured (car, debt consolidation, renovation) | Retail | Fixed / variable; A$250 application fee waived in a 2026 offer |
| NAB Premier Banking | Relationship banking for affluent customers | Mass affluent | Relationship pricing |
| NAB app / Internet Banking | Digital channels, Fast Payments (NPP), scam/fraud tools including 24/7 Fraud Assist live chat (launched 1H26) | All retail | Free |
| International transfers | $0 fee when sending in foreign currency (NAB website) | Retail | FX margin |
| Insurance (distributed) | Home and contents, landlord, car, caravan | Retail | Third-party underwritten; NAB distributes |
| nabtrade | Online broking platform | Self-directed investors | Brokerage fees |
| NAB Equity Lending | Margin lending | Investors | Interest |
| NAB Community Hub (Werribee, VIC) | First integrated multi-service community hub, launched 1H26 | Vulnerable / multilingual customers | — |
ubank (digital bank, within Personal Banking)
| Product | Description | Notes |
|---|---|---|
| Spend / Save accounts | Digital transaction and high-interest savings accounts | Customer-acquisition brand |
| ubank home loans | Digital mortgages | Integrates the former 86 400 technology stack (acquired 2021) |
| Accountability | Moved to Group Executive Personal Banking (Ana Marinkovic) per 11 Aug 2026 ELT update | Previously under COO |
Business & Private Banking
| Product / brand | Description | Target customer |
|---|---|---|
| NAB Business Transaction Account ($0 monthly fee option) | Core business transaction account | SME / sole traders |
| Business savings / deposit accounts | Business deposit products | SME |
| NAB QuickBiz overdraft | Unsecured overdraft up to A$50,000 | Small business |
| Business loans (secured / unsecured) | Term lending; new digital business lending platform; >80% of 1H26 applications submitted digitally | SME, mid-market |
| Equipment and vehicle finance | Asset finance | SME / agri |
| Trade and invoice finance; bank guarantees | Working capital | Importers/exporters, contractors |
| Business credit cards (NAB Qantas Business Signature, Rewards Business Signature, Low Rate Business, purchasing and corporate cards) | Commercial cards; real-time fraud alerts via two-way SMS launched 1H26 | SME to corporate |
| EFTPOS terminals / merchant acquiring | In-person acceptance; 2026 rental-rebate offer | Merchants |
| NAB Gateway, NAB Transact | eCommerce payment gateways | Online merchants |
| NAB Portal Pay | Industry payment portal, integrated with MRI property software | Real estate, strata, professional services |
| Industry payment solutions | Rolled out across professional services, insolvency, real estate, strata, independent schools and health (FY25) | Vertical-specific |
| Pay by Bank (Banked) | Account-to-account real-time checkout; used for Amazon.com.au checkout (partnership announced Jan 2025) | Merchants, billers |
| Specialised industry banking | Agribusiness, health, professional services, government/education/community | Sector clients |
| JBWere | Private wealth advice and investment for HNW and family offices | UHNW/HNW |
| NAB Private Wealth | Private banking, investment and advice solutions | HNW |
| AI for Business Masterclass (with National AI Centre) | Free SME education programme | SME |
Corporate & Institutional Banking
| Offering | Description |
|---|---|
| Corporate lending and syndication | Bilateral and syndicated facilities |
| Specialised finance | Project, infrastructure, acquisition and real-asset finance |
| Debt capital markets | Bond origination, green/sustainable bonds |
| Markets | FX, rates, commodities, risk management products |
| Transaction banking | Cash management, payments, liquidity; NAB Connect platform ranked #1 for overall platform features and functionality for 8 consecutive years (Coalition Greenwich 2026 Australia Large Corporate Transactional Banking study, per NAB website) |
| NAB Direct Link | Host-to-host corporate payments connectivity |
| Trade and working capital | Supply-chain and receivables finance |
| Investor partnering | Coverage for superannuation funds and asset managers |
| Asset servicing | Custody business being wound down (FY25 Results Summary) |
| NAB Economics / Markets Research | Morning Call podcast, NAB Monthly Business Survey, Housing Monitor (brand and franchise asset) |
New Zealand Banking (BNZ)
| Offering | Description |
|---|---|
| BNZ personal banking | Mortgages, deposits, cards, BNZ app |
| BNZ business and agri | SME, agribusiness and commercial lending |
| BNZ corporate and institutional | Corporate banking and markets in NZ |
| Notes | BNZ ranked first in consumer NPS among the 5 major NZ banks at Sep 2025 (Insights HQ, cited in FY25 Results Summary) |
Other group platforms
| Platform | Description |
|---|---|
| NAB Ventures | Corporate VC arm. Invested in Banked in 2022, 2023 and 2024 before full acquisition |
| NAB Nexus | 24/7 service referenced in 3Q26 update. Details not fully disclosed |
| NAB Customer Voices | Customer-advocacy feedback programme, rolled out from FY25 and embedded in more than half of priority frontline teams by 1H26 |
Financial Narrative
Earnings
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Segment Overview
| Segment | What it contains | Key products / services |
|---|---|---|
Business & Private Banking (B&PB) | SME, mid-market, agribusiness, specialised industry banking; private banking; JBWere and NAB Private Wealth; some business-owner home lending | Business lending, overdrafts, equipment finance, trade, deposits and transaction accounts, merchant/EFTPOS, FX, wealth advice |
Personal Banking (PB) | Australian consumer banking through branches, contact centres, proprietary home lenders, brokers and digital; ubank (accountability moved under PB Group Executive from Aug 2026); Advantedge (run-off) | Home loans, deposits, cards, personal loans, Premier banking |
Corporate & Institutional Banking (C&IB) | Large corporates, institutions, governments, financial sponsors; Markets; offshore branches | Corporate lending, specialised and infrastructure finance, DCM, FX and rates, transaction banking, working-capital solutions; asset servicing being wound down |
New Zealand Banking (NZB) | Bank of New Zealand: personal, business, agri, corporate in NZ | Full-service banking in NZ |
Corporate Functions & Other (CFO) | Group treasury, technology, enterprise functions, eliminations; large notable items (e.g. 1H26 software LNI) | — |
Segment cash earnings (AUD Mn)
| Segment cash earnings (AUD Mn) | FY24 | FY25 |
|---|---|---|
Business and Private Banking | 3,277 | 3,330 |
Personal Banking | 1,140 | 1,253 |
Corporate and Institutional Banking | 1,770 | 1,854 |
New Zealand Banking (AUD) | 1,333 | 1,353 |
Corporate Functions and Other | -418 | -699 |
Group cash earnings | 7,102 | 7,091 |
Segment YoY growth FY25 v FY24 (%)
| Segment YoY growth FY25 v FY24 (%) | Value |
|---|---|
B&PB | 1.6 |
Personal Banking | 9.9 |
C&IB | 4.7 |
NZ Banking (AUD) | 1.5 |
NZ Banking (NZ$, NZ$1,485m) | 2.8 |
Group | -0.2 |
Segment contribution to FY25 cash earnings ex Corporate Functions (%) | Value |
B&PB | 42.7 |
Personal Banking | 16.1 |
C&IB | 23.8 |
NZ Banking | 17.4 |
Segment cash earnings (AUD Mn) — Business and Private Banking
| Segment cash earnings (AUD Mn) | 1H25 | 2H25 | 1H26 |
|---|---|---|---|
Business and Private Banking | 1,647 | 1,683 | 1,850 |
Personal Banking | 555 | 698 | 700 |
Corporate and Institutional Banking | 908 | 946 | 921 |
New Zealand Banking (AUD) | 707 | 646 | 627 |
Corporate Functions and Other (incl. LNI) | -234 | -465 | -1,459 |
Group cash earnings | 3,583 | 3,508 | 2,639 |
Group cash earnings ex LNI | 3,583 | 3,508 | 3,588 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Cash earnings (AUD Mn) | 6,558 | 7,104 | 7,731 | 7,102 | 7,091 |
Statutory net profit attributable (AUD Mn) | 6,364 | 6,891 | 7,414 | 6,960 | 6,759 |
Dividend per share (A$ cents) | 127 | 151 | 167 | 169 | 170 |
Credit impairment charge (AUD Mn, negative = write-back) | -217 | 125 | 802 | 728 | 833 |
Group CET1 ratio Level 2 (%) | 13.00 | 11.51 | 12.22 | 12.35 | 11.70 |
NPEs to gross loans and acceptances (%) | 1.15 | 0.95 | 1.13 | 1.39 | 1.55 |
Income Statement and Returns & Leverage Ratios (%)
| Metric | FY2024 | FY2025 |
|---|---|---|
Net interest income (AUD Mn) | 16,754 | 17,398 |
Other operating income (AUD Mn) | 3,482 | 3,415 |
Net operating income (AUD Mn) | 20,236 | 20,813 |
Operating expenses (AUD Mn) | 9,413 | 9,848 |
Underlying profit (AUD Mn) | 10,823 | 10,965 |
Credit impairment charge (AUD Mn) | 728 | 833 |
Cash earnings before tax (AUD Mn) | 10,095 | 10,132 |
Income tax expense (AUD Mn) | 2,975 | 3,002 |
Cash earnings (AUD Mn) | 7,102 | 7,091 |
Net interest margin (%) | 1.71 | 1.74 |
Cost-to-income (%) | 46.5 | 47.3 |
Cash ROE (%) | 11.6 | 11.4 |
Statutory ROE (%) | 11.4 | 10.8 |
Cash EPS basic (A$ cents) | 229.2 | 231.8 |
Cash EPS diluted (A$ cents) | 227.0 | 230.4 |
Statutory EPS basic (A$ cents) | 224.6 | 221.0 |
Statutory EPS diluted (A$ cents) | 222.7 | 219.9 |
Cash dividend payout ratio (%) | 73.7 | 73.3 |
NTA per share (AUD) | 18.29 | 18.71 |
Financial Analysis
| Metric (AUD Mn unless stated) | 1H25 | 2H25 | 1H26 |
|---|---|---|---|
Net interest income | 8,445 | 8,953 | 9,163 |
Other operating income | 1,823 | 1,592 | 1,707 |
Net operating income | 10,268 | 10,545 | 10,870 |
Operating expenses ex LNI | 4,805 | 5,043 | 5,018 |
Large notable items pre-tax | 0 | 0 | 1,347 |
Underlying profit (reported) | 5,463 | 5,502 | 4,505 |
Credit impairment charge | 348 | 485 | 706 |
Cash earnings (reported) | 3,583 | 3,508 | 2,639 |
Cash earnings ex LNI | 3,583 | 3,508 | 3,588 |
Statutory net profit | 3,407 | 3,352 | 2,750 |
NIM (%) | 1.70 | 1.78 | 1.81 |
Cash ROE ex LNI (%) | 11.7 | 11.0 | 11.6 |
Cash EPS basic ex LNI (A$ cents) | 116.9 | 114.8 | 117.3 |
DPS (A$ cents) | 85 | 85 | 85 |
CET1 Level 2 (%) | — | 11.70 | 11.65 |
Template Metric Details
| Template metric | Status for NAB |
|---|---|
Gross profit / gross margin | N/M. Closest proxy is net operating income |
EBITDA / EBITDA margin | N/M. Closest proxy is underlying (pre-provision) profit: FY25 A$10,965m, a 52.7% margin on net operating income |
Operating margin | Underlying profit / NOI: FY24 53.5%, FY25 52.7% |
Net margin | Cash earnings / NOI: FY24 35.1%, FY25 34.1% |
Revenue CAGR | NOI FY24→FY25 +2.9%. |
Balance Sheet
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Total assets (AUD Mn) | 1,059,083 | 1,080,248 | 1,109,062 |
Total liabilities (AUD Mn) | 997,580 | 1,018,035 | 1,045,415 |
Net assets / total equity (AUD Mn) | 61,154 | 61,455 | 62,922 |
Balance-sheet Item Details
| Balance-sheet item | Latest disclosed |
|---|---|
Gross loans and advances growth FY25 | +5.9% (FY25 Results Summary) |
Deposit growth FY25 | +7.4% |
GLA growth 1H26 v 2H25 | +2.9% (+3.7% ex FX) |
Deposit growth 1H26 v 2H25 | +2.3% (+3.0% ex FX) |
Deposits / total lending | 84% (Sep 2025) |
Goodwill and intangibles | Capitalised software reduced by A$1,347m at 31 Mar 2026 via accelerated amortisation |
Total debt (short/long) | N/M for a bank. Wholesale funding issued: A$19.6bn term in 1H26 incl. A$3.7bn Tier 2 |
Net debt / working capital | N/M |
Margin Analysis (%)
| Metric | Sep 2024 | Sep 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
CET1 Level 2 (%) | 12.35 | 11.70 | 11.65 | 11.93 |
Pro forma CET1 (%) | — | 11.81 (MLC Life sale) | 12.05 (DRP raise) | — |
Leverage ratio (%) | — | 4.92 | 4.91 | — |
LCR quarterly average (%) | — | 135 | 132 | — |
NSFR (%) | — | 116 | 116 | — |
Collective provisions / CRWA (%) | — | 1.33 | 1.35 | — |
Per-Share Data and Key Financials
| Metric | FY2024 | FY2025 |
|---|---|---|
Ordinary DPS (A$ cents) | 169 | 170 |
Shares bought back in year (AUD Bn) | — | 0.6 |
Returns & Leverage Ratios (%)
| Ratio | FY24 | FY25 | 1H26 (ex LNI) |
|---|---|---|---|
Cash ROE (%) | 11.6 | 11.4 | 11.6 |
Statutory ROE (%) | 11.4 | 10.8 | 8.9 (reported) |
ROA (statutory NPAT / avg total assets, %) | approx 0.65 | approx 0.62 | — |
Cost-to-income (%) | 46.5 | 47.3 | 46.2 |
ROIC, current ratio, net debt/EBITDA, interest coverage, asset turnover, cash conversion cycle | N/M | N/M | N/M |
Geography — cash earnings (AUD Mn)
| Geography — cash earnings (AUD Mn) | FY2024 | FY2025 |
|---|---|---|
New Zealand Banking | 1,333 | 1,353 |
Australia and offshore (Group less NZB) | 5,769 | 5,738 |
Group | 7,102 | 7,091 |
Geography — cash earnings (AUD Mn) | 1H25 | 2H25 |
New Zealand Banking | 707 | 646 |
Australia and offshore (ex LNI) | 2,876 | 2,862 |
Group ex LNI | 3,583 | 3,508 |
Jurisdiction / Entity Details
| Jurisdiction / entity | Employees |
|---|---|
Australia (all entities) | 29,557 |
India — NAB Global Innovation Centre India Pvt Ltd | 4,277 |
UK — NAB Limited London Branch | 235 |
USA — NAB Limited New York Branch | 93 |
Singapore Branch | 54 |
Shanghai Branch | 21 |
Tokyo Branch | 20 |
NAB Japan Securities | 12 |
Valuation Snapshot
| Metric | Value | Source |
|---|---|---|
Recent share price | ~A$39.1 (late Sep 2026) | Motley Fool, Sep 2026 |
52-week range | A$35.48 – A$48.40 | Stocklight (Aug 2026) |
Price at FY25 result (6 Nov 2025) | ~A$43.3 intraday | Capital Brief |
Price around 5 Mar 2026 | A$47.33 | Motley Fool price history |
Price on 3Q26 day (17 Aug 2026) | Closed A$39.46 (-4.6%) | Stocklight |
1-year performance (Oct 2025 → Oct 2026) | Approx. -10% to -13% price-only | Analyst estimate from the above data points; verify |
Consensus EPS FY26 / FY27 (AUD) | 2.38 / 2.54 | Motley Fool citing consensus, Sep 2026 |
P/E FY26 / FY27 | ~16x / ~15x | Motley Fool |
P/NTA | ~2.1x (A$39.1 / NTA A$18.32 at Mar 2026) | Analyst calculation |
Dividend yield (trailing 170c) | ~4.3%, fully franked (~6.2% grossed-up) | Analyst calculation |
Peer P/E (CBA) | ~27x FY26 cash earnings | Motley Fool, Aug 2026 |
EV/EBITDA, EV/Sales | N/M for banks | — |
Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Interim DPS (A$ cents) | 60 | 73 | 83 | 84 | 85 |
Final DPS (A$ cents) | 67 | 78 | 84 | 85 | 85 |
Total DPS (A$ cents) | 127 | 151 | 167 | 169 | 170 |
Credit Ratings
| Agency | Senior unsecured | Tier 2 | Covered bonds | Outlook | Source / date |
|---|---|---|---|---|---|
S&P Global | AA- | A- | — | — | CreditFlow / Cbonds |
Moody's | Aa2 | A3 | Aaa | — | CreditFlow (2026 issues) |
Fitch | AA- (affirmed early 2026) | A- | AAA | Stable | Stockti / CreditFlow |
Morningstar DBRS | AA (Issuer) | — | — | Stable (Sep 2024 confirmation) | DBRS |
Recent Issuance Details
| Recent issuance (2026) | Date | Size | Tenor / structure | Coupon / spread |
|---|---|---|---|---|
Covered bond | 17 Aug 2026 | 1,750m (A$ per CreditFlow) | 5 years (Aug-31) | 4.61% |
Senior unsecured FRN | 16 Jul 2026 | A$2,500m | 3 years | 3mBBSW+57 |
Senior unsecured (USD) | 28 May 2026 | 1,250m and 750m | 3 years | 4.434% / SOFR+54 |
Subordinated Tier 2 | 28 May 2026 | 1,000m | 11NC10 | 5.625% |
Senior unsecured | 6 May 2026 | A$2,000m and 500m | 5 years | 3mBBSW+71 / 5.378% |
Subordinated Tier 2 | 6 May 2026 | 1,000m | 15NC10 | 6.558% |
Analyst Conclusions
Management guidance
FY26 productivity: more than A$450m.
FY26 cost growth: below 4.6% ex-LNI. Management cautioned that 2H26 opex carries the flow-on effect of the software capitalisation change.
Capital: CET1 to be maintained above 11.25%; currently ~12% after the DRP.
Dividends: 65–75% payout policy.
Macro view (NAB Economics): - Australian growth slows to ~1.5% over 2026; unemployment peaks ~4.75%.
-
Cash rate now 4.60%, with risk of a further November hike.
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Gradual normalisation expected from around August 2027.
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NZ recovery is fragile.
Consensus expectations
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Consensus FY26 EPS ~A$2.38 and FY27 ~A$2.54, implying ~7% EPS growth into FY27 (Motley Fool, Sep 2026).
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FY26 statutory and cash earnings will be depressed by the A$949m post-tax LNI.
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FY26 cash earnings run-rate ex-LNI: 1H26 A$3,588m plus 3Q26 ~A$1.83bn indicates a full-year figure of ~A$7.2–7.3bn if 4Q26 is similar. This is an analyst extrapolation, not guidance.
Bull case
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Business-bank operating leverage. B&PB earnings grew 9.9% HoH in 1H26. Business lending rose 5.6% in 1H26 and 2% in 3Q26 (B&PB +4%), with share gains. Costs are flat ex-LNI and NIM is at 1.81%. Higher rates lift replicating-portfolio income.
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Cleaner cost base after the reset. The software write-down removes a capitalised legacy overhang. With more than A$450m of annual productivity and lower future amortisation, cost-to-income could trend from ~47% towards the low-40s. That would narrow the ROE gap to CBA.
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Over-provisioned into the shock. Forward-looking provisions total A$1.93bn and CP/CRWA is 1.35%. If the Middle East-related stress proves milder, FLA releases (as in FY25's A$283m release) could provide earnings upside. CET1 above 12% then re-opens capital-management optionality.
Bear case
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Credit cycle hits the business bank first. Four RBA hikes in 2026, the fuel shock and falling house prices threaten SME, agri, transport and CRE borrowers. NAB's book is the most business-heavy of the majors. NPEs are already 1.52%, and IA charges ran at ~A$1.0bn annualised in 1H26.
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Structural cost creep. The software-policy change permanently lifts expensed technology spend. The 3Q26 update cited higher costs, and the market sold off 4.6%. Investment needs (A$1.8bn in FY25) plus remediation (payroll, customer) may keep costs rising faster than revenue.
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Dilution and the return gap. The A$1.8bn discounted raise and DRP dilutes EPS. Cash ROE of ~11.5% is ~250bps below CBA's. Repeated executive churn, including CFO, CRO, Technology and COO in 18 months, raises execution risk. Home-lending momentum softened in 3Q26.
Key catalysts and monitorables (next 12 months)
| Catalyst | Expected timing | What to watch |
|---|---|---|
| FY26 full year results | 5 Nov 2026 | Ex-LNI cash earnings vs ~A$7.2–7.3bn run-rate; 2H26 cost growth; final DPS (85c base case); CET1 after DRP; any capital-management signals |
| RBA November meeting | Nov 2026 | Further hike risk (NAB flagged the bias); NIM vs credit trade-off |
| AGM | Dec 2026 | Remuneration vote; Bligh election |
| 1Q27 trading update | Feb 2027 | Impairment trends; productivity delivery |
| 1H27 results | May 2027 | First full half under the new ELT structure; Banked integration |
| Middle East / fuel-price trajectory | Ongoing | FLA release or top-up |
| NZ economy and RBNZ | Ongoing | BNZ earnings recovery |
| APRA hybrid phase-out / capital rules | Ongoing | Capital stack, Tier 2 issuance costs |
| Shaun Dooley retirement | By end-2026 | Risk continuity |
| Peer results (WBC, ANZ FY26, ~early Nov 2026) | Nov 2026 | Relative credit and margin read-through |
Concluding analyst verdict
NAB enters FY27 as a fundamentally sound but cyclically exposed franchise. Its operating engine is improving more than its headline numbers suggest. Stripping out the A$949m post-tax software write-down, 1H26 cash earnings of A$3,588m were up 2.3% on 2H25 and underlying profit rose 6.4%. A further 2% quarterly gain in 3Q26 points to a group earning roughly A$7.2–7.3bn on a clean basis. That is modest growth over FY25's A$7,091m, delivered while NIM expanded to 1.81% and costs ex-LNI fell. The three strategic priorities are visibly working. Business lending and SME share are rising. Proprietary home lending reached 47.7% of drawdowns. Deposits are growing fast enough to fund 84% of lending.
Against this, the balance of risks has shifted. NAB is the major bank most leveraged to business credit, just as Australia faces a 4.60% cash rate, a fuel-price shock and falling dwelling prices. Management has front-run the risk. It added a A$300m forward-looking provision top-up, applied a 45% downside weighting, and raised ~A$1.8bn of equity to push CET1 above 12%. This is prudent, but it came at the cost of EPS dilution and a weaker share price. The executive bench has also been substantially rebuilt in 18 months. Execution must now be proven under a new CFO, CRO and technology leadership.
At ~16x FY26 consensus EPS, ~2.1x NTA and a ~4.3% fully franked yield, NAB trades at a steep discount to CBA (~27x). That discount is justified by a ~250bps ROE gap and higher credit beta. However, it looks wide relative to NAB's improving underlying trajectory.
Verdict: constructive but conditional. The investment case hinges on two things being demonstrated at the 5 November FY26 result: credit losses plateauing, and the post-reset cost base growing below revenue. If both hold, a re-rating towards peer-average multiples is plausible. If business-credit stress accelerates, NAB will underperform its peers first.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure / start | Prior roles and background |
|---|---|---|---|
Andrew Irvine | Managing Director & Group CEO | CEO since 2 Apr 2024; joined NAB 2020 as Group Executive B&PB | Former senior executive at BMO Financial Group (Canada). Also chaired the Australian Banking Association. |
Inder Singh | Group CFO & Group Executive Strategy | Started 2 Mar 2026 (announced Aug 2025) | — |
Connie Sokaris | Group Chief Risk Officer | Appointed 7 May 2026; started 3 Aug 2026 subject to approvals | At NAB since 2003; previously Executive, Credit and Market Risk; earlier C&IB client coverage roles |
Andrew Auerbach | Group Executive, Business & Private Banking | From 16 Jun 2025 | 21+ years in senior roles at BMO (Canada); co-founder/CEO of Delisle Advisory Group |
Ana Marinkovic | Group Executive, Personal Banking (incl. ubank from Aug 2026) | Appointed 2024 | Previously Executive, Business Direct & Small Business |
Cathryn Carver | Group Executive, Corporate & Institutional Banking | From 1 Jul 2024 | Previously Executive, Client Coverage, C&IB |
Daniel Huggins | CEO, Bank of New Zealand | — | BNZ executive roles |
Pete Steel | Group Executive, Technology & AI (expanded from Digital, Data & AI) | Expanded role from Oct 2026 | — |
Shane Conway | Group Executive, Transformation & Operations | Group Executive Transformation from 1 Dec 2025; expanded Oct 2026 | Led Technology Modernisation and Simplification; executive sponsor of the Banked acquisition |
Sarah White | Group Executive, People & Culture | — | — |
Jon Benson | Group General Counsel (joins ELT 1 Oct 2026) | GC role from 1 Dec 2025 | Previously Chief Legal Officer, Corporate & Customer Divisions Legal |
Executive Leadership Team — Ross McEwan
| Name | Former role | Departure |
|---|---|---|
Ross McEwan | Group CEO | Retired April 2024 |
David Gall | Group Executive C&IB | Left 1 Oct 2024 |
Rachel Slade | Group Executive B&PB | Left 1 Jul 2025 |
Nathan Goonan | Group CFO | Departed 2025 |
Sharon Cook | Group Executive Customer & Corporate Services / General Counsel | Retired 31 Dec 2025 |
Shaun Dooley | Group CRO (also acting CFO Mar 2025–Mar 2026) | Retiring by end-2026 |
Patrick Wright | Group Executive Technology & Enterprise Operations | Left ELT 30 Sep 2026; special adviser until retirement in 1H27 |
Les Matheson | Group COO | Retired 30 Sep 2026 |
Board of Directors
| Director | Role | Notes |
|---|---|---|
Philip Chronican | Independent Non-Executive Chair | Former NAB interim CEO (2019), ex-ANZ and Westpac senior executive |
Andrew Irvine | Managing Director & Group CEO | Executive director |
Anna Bligh AC | Independent NED | Effective 1 Sep 2026 subject to regulatory approval. Former Queensland Premier; ABA CEO for ~8 years; Chair, UNICEF Australia; former Medibank NED |
Kathryn Fagg AC | Independent NED | — |
Christine Fellowes | Independent NED | Global media executive (ex-NBCUniversal); appointed 2023 |
Warwick Hunt MNZM | Independent NED | — |
Carolyn Kay | Independent NED | Appointed 2023; Scentre Group NED; former Future Fund guardian |
Alison Kitchen AM | Independent NED | Former KPMG chair; Audit Committee Chair (succeeded David Armstrong after the 2023 AGM) |
Simon McKeon AO | Independent NED | Former Macquarie executive chairman (Melbourne); Monash chancellor |
Ann Sherry AO | Independent NED | — |
Major Shareholders
| Holder type | Detail |
|---|---|
Retail shareholders | More than 40% of NAB's shareholders are retail investors (CEO, FY24 result release); ~500,000 shareholders (1H26 release) |
Top registered holders | Typically custodial nominees (HSBC Custody Nominees, J.P. Morgan Nominees Australia, Citicorp Nominees, BNP Paribas Nominees, National Nominees). |
Substantial holders (≥5%) | Index managers (e.g. BlackRock, Vanguard) have historically lodged notices near the 5% threshold. |
Competitive Landscape
Competitors by Segment
| Segment | Competitors |
|---|---|
Business banking (SME / commercial) | Commonwealth Bank (CBA), Westpac (WBC), ANZ, Macquarie Bank, Bendigo & Adelaide Bank, Bank of Queensland, Judo Bank, non-bank SME lenders (Prospa, Moula), Rabobank (agri) |
Home lending | CBA, Westpac, ANZ (incl. Suncorp Bank, acquired 2024), Macquarie, ING Australia, Bendigo, BOQ, non-banks (Pepper, Liberty, La Trobe) |
Deposits / digital | CBA, Westpac, ANZ, Macquarie, ING, Bendigo/Up |
Corporate & institutional | ANZ, CBA, Westpac, Macquarie, global banks (HSBC, Citi, MUFG, SMBC, BNP Paribas) |
Payments / merchant | CBA (incl. Square/Smartpay partnerships), Westpac, ANZ, Tyro, Stripe, Adyen, Square, Zeller |
New Zealand | ANZ NZ, ASB (CBA), Westpac NZ, Kiwibank |
Wealth / broking | CommSec (CBA), Macquarie, Stake, SelfWealth, private banks |
Peer Comparison FY2026
| Metric | NAB FY25 (Sep) | CBA FY26 (Jun) | Westpac FY25 (Sep) | ANZ FY25 (Sep) |
|---|---|---|---|---|
Cash / underlying NPAT (AUD Mn) | 7,091 | 10,982 | 7113 (ex notable items) | 6896 (ex significant items) |
Statutory NPAT (AUD Mn) | 6,759 | 10,911 | 6,916 | 5890 (approx.) |
Profit growth YoY (%) | -0.2 | 7.1 | -2 (ex notables) | approx. 0 (stable) |
NIM (%) | 1.74 | 2.05 | — | — |
Cash ROE (%) | 11.4 | 14.0 | — | — |
CET1 (%) | 11.70 | 12.0 | 12.5 | 12.0 |
Full-year DPS (A$ cents) | 170 | 505 | 153 | 166 |
Cost-to-income (%) | 47.3 | 45.5 | — | — |
Competitors by Segment by Market
| Market | NAB share | Source / date |
|---|---|---|
Australian business lending | ~22% | Morningstar DBRS, Sep 2024 |
Australian home lending | ~14.6% | Morningstar DBRS, Sep 2024 |
SME and total business lending share trend | Gaining in FY25 and 1H26 | NAB results (RBA/APRA data) |
Home lending growth vs system | 0.6x (FY24) → 0.9x (FY25) → 1.1x ex Advantedge in 1H26 (0.7x incl.) | NAB results |
