Key highlights

  • NAB reported statutory net profit of A$2,750 million and cash Earnings of A$2,639 million for 1H26.
  • A change in software Capitalisation policy reduced cash earnings by A$949 million, and cash earnings excluding it were A$3,588 million.
  • The Group CET1 ratio was 11.65%, and net interest Margin rose 3 basis points to 1.81%.

National Australia Bank (ASX:NAB) released its half year results summary for 1H26 on 4 May 2026. The document provided is a half-year result, not a full-year annual report. It covered earnings, Business lending, deposits and capital, and a change in software capitalisation policy.

About NAB

NAB is one of Australia’s four major banks, focused on business banking, with Business and Private Banking, Personal Banking and Corporate and Institutional Banking operations, as well as New Zealand banking.

Earnings

Statutory net profit was A$2,750 million and cash earnings were A$2,639 million. Changes to the software capitalisation policy lowered cash earnings by A$949 million. Excluding this large notable item, cash earnings were A$3,588 million, up 2.3% on 2H25 and up 0.1% on 1H25, and Underlying Profit was up 6.4%. Cash Return on Equity was 8.5%, or 11.65% excluding the item.

Net interest margin rose 3 basis points to 1.81%. Excluding a 2 basis point increase from markets and treasury and a 1 basis point benefit from liquid assets, margin was stable.

Business and deposits

Business and Private Banking grew 5.4%. Australian business lending rose 5.6%, with Market Share gains in SME and total business lending. Proprietary home lending drawdowns rose to 47.7% from 41.4% in 2H25. Deposit balances in Business and Private Banking and Personal Banking increased 4.7%, including 8.0% growth in transaction accounts excluding offsets.

Capital

The Group CET1 ratio was 11.65%, down 5 basis points, and the March 2026 pro forma Group CET1 ratio was 12.05%. The Interim Dividend reinvestment plan is part of its capital arrangements. The company noted geopolitical tensions have created a more volatile economic environment.

Risks to consider

The software capitalisation change reduced cash earnings by A$949 million, and earnings excluding it were only 0.1% higher than 1H25. The CET1 ratio fell slightly over the half.

Geopolitical tensions have made the macroeconomic environment more volatile, and competition in home lending and deposits is intense. Customer outcomes were described as improved with more to do.

Catalysts to watch

Items to watch include the full-year result, proprietary home lending share, business lending growth, the CET1 ratio relative to the 12.05% pro forma level, and margin trends.