National Australia Bank reported on 4 May 2026 cash earnings of A$2,639 million for the six months to 31 March 2026, down 26.3% on a year earlier and 24.8% on the previous half, after a A$949 million after-tax large notable item arising from a change to its software capitalisation policy. Statutory net profit fell 19.3% from a year earlier to A$2,750 million.
Excluding the large notable item, cash earnings were A$3,588 million, up 2.3% on the second half of 2025 and 0.1% on the first half. On the same basis, underlying profit rose 6.4% on the previous half, which the bank attributed to improved Markets & Treasury income, volume growth and disciplined cost management, including productivity benefits of A$199 million. Including the charge, underlying profit fell 18.1% to A$4,505 million.
INCOME AND MARGINS
Net interest income was A$9,163 million, up 2.3% on the previous half, and other operating income was A$1,707 million, taking net operating income to A$10,870 million, up 3.1%. The net interest margin rose 3 basis points to 1.81%. Australian business lending grew 5.6%, and deposits in the Business & Private Banking and Personal Banking divisions rose 4.7%.
PROVISIONS AND CAPITAL
The credit impairment charge rose to A$706 million from A$485 million in the second half of 2025. Forward-looking collective provisions increased by A$300 million, reflecting potential stress related to the Middle East conflict, including a higher weighting of 45% to the downside economic scenario for Australia.
NAB declared an interim dividend of 85 cents per share, fully franked, equal to a cash payout ratio of 72.5% excluding the large notable item. The group's common equity tier 1 ratio was 11.65%. The interim dividend reinvestment plan will include a 1.5% discount and be partially underwritten, raising about A$1.8 billion and supporting a pro forma CET1 ratio of 12.05%. “We are well placed to navigate a period of increased volatility,” chief executive Andrew Irvine said.