National Australia Bank (ASX:NAB): FY26 Lending Growth and AUD 1.70 Dividend

Aditi Sarkar

12 November 2026 07:39 PM AEDT

National Australia Bank (ASX:NAB): FY26 Lending Growth and AUD 1.70 Dividend

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Highlights

National Australia Bank (ASX:NAB) reported 5.8% Revenue growth in FY26.
Underlying profit excluding a notable item increased 6.9%.
Business and Private Banking lending balances rose 10.5%.
The bank declared a final Dividend of AUD 0.85 per share.

National Australia Bank Limited (ASX:NAB) operates retail, Business and institutional banking businesses in Australia and New Zealand. The shares settled at AUD 38.77 on 12 November 2026. Its early-November FY26 results described lending and deposit expansion, higher Underlying Profit and a planned operating-model simplification.

Lending Businesses Across Australia and New Zealand

National Australia Bank provides banking and financial services to individuals, businesses and institutional clients. Its operations include Business and Private Banking, Corporate and Institutional Banking, Personal Banking and the Bank of New Zealand franchise. Lending volumes, deposit balances and interest margins influence earnings, while Capital and Credit risk are central considerations for a deposit-taking institution.

NAB (ASX:NAB) has prioritised business banking, deposit growth and direct origination of housing loans. Management said its Business and Private Banking and Corporate and Institutional Banking operations together account for approximately 75% of underlying group profit. This mix gives business lending particular significance in assessing performance.

FY26 Results and Operational Priorities

In its results announced on 5 November 2026, NAB reported revenue growth of 5.8% and a 6.9% rise in underlying profit excluding a large notable item identified at the half year. Costs increased 4.5%, while the bank reported an improvement in net interest margin. The adjustment to underlying profit should be kept separate from statutory results.

NAB reported a 10.5% increase in Business and Private Banking lending balances, accompanied by deposit growth of 6.1%. Corporate and Institutional Banking lending rose 9.0%, while deposits increased 5.5%. In Personal Banking, deposits grew 7.0%. Each rate relates to its own operating segment rather than total group balances.

Housing Lending, Distributions and Sector Conditions

For Australian housing loans, the share of new originations through proprietary channels rose to 53% during the second half of FY26. Direct channels can alter the mix and Economics of Mortgage acquisition, but the proportion by itself does not quantify profitability. Competition for borrowers and deposits remains a consideration across the banking sector.

NAB declared a final dividend of AUD 0.85 per share, bringing total FY26 dividends to AUD 1.70 per share. The bank described inflation, higher living costs and five policy-rate increases as pressures affecting the operating environment. Credit outcomes will depend on customers’ repayment capacity as well as economic conditions.

Organisational Changes and Risk Factors

The bank has announced an operating-model simplification that could reduce staffing by up to 2,500 positions by September 2027. Management associated the programme with reducing duplication, improving decision-making and directing Investment to customer-facing activities. Its ultimate cost and service effects will depend on execution and future disclosures.

NAB (ASX:NAB) remains exposed to economic slowing, business credit losses, funding costs and ongoing competition. Changes in workforce and technology systems can create execution challenges alongside intended efficiencies. Reporting on Loan arrears, business lending quality and deposits will help clarify how these risks develop.

Key Insights

FY26 results showed higher underlying profit and revenue, accompanied by growth in several business banking segments. NAB enters the next reporting cycle with a planned organisational restructure and a total FY26 dividend of AUD 1.70 per share. Later results will establish whether the combination of lending growth, Margin management and operating changes affects profitability and risk.

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