NAB profit falls 19% to $1.98b on large notable items

Net interest income rose by 8.5% whilst total operating expenses hit a 32.47% increase.

National Australia Bank (NAB) reported a net profit of $1.98b (A$2.75b) for the six-month period ending 31 March 2026 (H1), declining by 19.28% year-on-year (YoY) compared to H1 2025, according to its latest financial results.

Profit was primarily pulled down by a $972.52m (A$1.35b) expense tagged as “large notable items before tax.”

Total operating expenses also rose 32.47% YoY to $4.59b (A$6.37b) during the six-month period.

Net interest income is $6.6b (A$9.16b) for the period, an 8.5% YoY increase.

Group common equity tier 1 ratio (CET1) is 11.65%.

NAB made progress against its three key priorities, according to its CEO Andrew Irvine. Australian business lending rose 5.6%, with market share gains in both total business lending and lending to small and medium enterprises (SMEs).

Australian home lending drawdowns via proprietary channels improved to 47.7% in H1 2026, from 41.4% in H2 2025, Irvine said.

Geopolitical tensions have created a more volatile macroeconomic environment but NAB enters this period in good shape, he added. 

NAB has reportedly reached out to over 200,000 customers since the outbreak of the Middle East conflict to discuss banking needs including fuel impacts.

“We are well placed to navigate a period of increased volatility,” Irvine said, noting that NAB’s FY2026 interim dividend reinvestment plan will include a 1.5% discount and be partially underwritten. The bank is also looking to raise A$1.8b.

Its interim dividend is 85 Australian cents per share.

(US$1 = A$1.39)