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# NAB's full-year cash earnings fall 13.4% to A$6.14bn as impairment charges rise 86%
- URL: https://www.theglobalbanker.com/nabs-full-year-cash-earnings-fall-13-4-to-a-6-14bn-as-impairment-charges-rise-86/
- Published: 2026-11-05T01:06:35.000Z
- Updated: 2026-11-05T03:27:40.000Z
- Description: National Australia Bank's cash earnings fell 13.4% to A$6.14 billion in the year to 30 September as credit impairment charges rose 86% to A$1.55 billion.
- Author: TGB Editorial Team
- Tags: Banking News, Asia-Pacific, #newsroom

[National Australia Bank](https://www.theglobalbanker.com/rankings/) reported statutory net profit of A$6.14 billion for the year ended 30 September, down 9.1% on a year earlier, while cash earnings declined 13.4%. Cash earnings were also A$6.14 billion, against A$7.09 billion in the 2025 financial year and a consensus estimate of A$7.24 billion.

Credit impairment charges rose 86% to A$1.55 billion and the bank recorded A$1.35 billion of software writedowns. The board declared a final dividend of 85 cents a share, bringing total dividends for the year to A$1.70, and the CET1 capital ratio stood at 11.87%.

## UNDERLYING GROWTH

Chief executive Andrew Irvine said underlying profit, excluding the large notable item announced at the half-year, rose 6.9% and revenue grew 5.8%, while costs were up 4.5% and the net interest margin improved. The margin rose 6 basis points to 1.80%.

Business and Private Banking, NAB's core division, grew lending balances by 10.5% and deposits by 6.1%, while Corporate and Institutional Banking grew lending by 9.0% and deposits by 5.5%. Together the two divisions account for approximately 75% of underlying profit, the bank said. Personal Banking deposits rose 7.0%, and the share of new Australian home loans written through NAB's own channels rose to 53% in the second half.

## A CONCENTRATED MARKET

NAB is one of the four major banks in [Australia](https://www.theglobalbanker.com/market-australia/), which together held A$5.13tn of assets at June 2026, about 73% of the banking total, according to TGB's market profile. NAB said that across Business and Private Banking and its Corporate and Institutional Bank it is the largest business lender in Australia.

The bank said higher inflation, five cash rate rises, rising living costs and global uncertainty are weighing on customer confidence and business conditions. Higher credit impairment charges included top-ups to forward-looking provisions, which the bank linked to more challenging economic conditions; the A$1.55bn charge included an A$403m top-up to forward-looking economic provisions.

## JOB CUTS AND OUTLOOK

NAB recently announced plans to simplify its operating model, including cutting its workforce by up to 2,500 roles by September 2027\. Under pressure from the Finance Sector Union, it has agreed to defer forced redundancies until January 2027 and extended consultation into November.

Irvine told a media call that NAB expected the more difficult conditions to endure. "Our view is that growth will slow next year, but our central case is that we will see growth of around 1%," he said, adding that a recession was not the most likely scenario but its probability had probably increased. In its results announcement NAB said the actions it had taken reflect its expectation of a tough year ahead.

## THE TGB VIEW

NAB ranks 22nd in Asia-Pacific in the TGB Bank Rankings with US$732.2bn of total assets at September 2025 (Commonwealth Bank's figures are to June 2025), the smallest balance sheet of Australia's four majors: Westpac is 21st with US$743.0bn, ANZ Group 19th with US$856.4bn and Commonwealth Bank of Australia 17th with US$886.7bn. Its 10.7% return on equity in the 2025 financial year sat behind Commonwealth Bank's 12.8% but ahead of Westpac's 9.5% and ANZ's 8.3%. An 86% rise in impairment charges in a year when underlying profit, excluding the half-year notable item, still grew 6.9% shows a bank provisioning for the harder conditions it describes. January 2027, until which forced redundancies have been deferred, is the next dated step in its plan to cut up to 2,500 roles by September 2027.