NAB sees net profit dip 2.9% to A$6.76b in FY2025

The group saw a deterioration in its business lending portfolio, the bank reported.

National Australia Bank (NAB) saw its net profit drop 2.9% year-on-year (YoY) to $4.38b (A$6.76b) in the FY2025 period that ended in September 2025.

The bank announced a final dividend of 85 Australian cents per share in its full year results summary released on 7 November 2025.

Net operating income rose 2.9% to $13.47b (A$20.81b) during the same period. Net interest income was 3.8% higher, at nearly A$17.4b during the whole year.

Credit impairment charge was A$833 in FY2025, higher than the $471.38m (A$728m) in the past year. This includes individually assessed charges of A$964m, and a $84.82m (A$131m) release from collective provisions, NAB said.

Group common equity tier 1 (CET1) ratio was 11.7%, down 65 basis points (bps) from September 2024, on slower lending growth, increased long term investment in the business, and the impact of $0.6b of shares bought back during the year.

The ratio of non-performing exposures to gross loans and acceptances rose by 16 basis points (bps) to 1.55% over the year.

This includes a 9bps increase in the impaired asset ratio due to deterioration in the group’s business lending portfolio, NAB reported. It involved a “small number of customers in both corporate & institution banking and New Zealand banking.”

NAB is making good progress on its key priorities, said NAB CEO Andrew Irvine in the results summary.

“We are making good progress on our key priorities of growing business banking, driving deposit growth, and strengthening proprietary home lending,” Irvine said.

“This has been supported by targeted investments in front line bankers and technology-enabled solutions delivering simpler, faster, and safer outcomes,” he added.

Irvine expressed optimism for NAB’s outlook. “NAB has a clear strategy and we are well-placed to manage our bank for the longer term and deliver sustainable growth and returns for shareholders,” Irvine said.