NAB underlying net profit jumps 12% to $3.1b in Q1

This was driven by the strong performance of its customer facing divisions.

National Australia Bank (NAB) reported its underlying profit rose by 12% to $3.1b in the first quarter, against the 11% quarterly average in the second half of 2025.

The bank linked this to increases across its customer facing divisions and a supportive Eustralian economic environment, according to the bank’s ASX release dated 18 February 2026.

Revenue also climbed 6%, supported by higher fees and commissions, volume growth, and lower remediation costs, excluding Markets & Treasury income.

Cash earnings of $1.33b (AU$2.02b) for the period ended 31 December 2025, a 15% increase over the prior half-year.

Net interest margin increased by 2 basis points to 1.80%, and operating expenses were broadly flat.

In lending, Australian business loans increased 2%, with the Business & Private Banking division reporting 3% growth.

Australian home lending grew 1.1 times the system, excluding the wind-down of NAB’s Advantedge portfolio.

Deposit balances in Business & Private Banking and Personal Banking increased 3%, including 6% growth in transaction accounts excluding offsets.

NAB also completed the migration of Citi Consumer Business customers onto its systems during the quarter.

On capital and asset quality, NAB reported a Level 2 Common Equity Tier 1 (CET1) ratio of 11.48%, down from 11.70% in the previous quarter, reflecting final dividend payments and growth in risk-weighted assets, partly offset by cash earnings.

Credit impairment charges for the quarter were $112m (AU$170m), mainly relating to business lending and unsecured retail portfolios.

The ratio of non-performing exposures to gross loans decreased and provision coverage ratios remained stable.

NAB reported productivity savings exceeding $297m (AU$450m) for FY26.

The bank also reported investments in customer experience initiatives and community support programs.

$1=AU$1.41