National Australia Bank Limited Q4 2026 Earnings Recap

NAB shares fell 4.9% after results, with the near-term outlook looking more challenging and cash earnings flat excluding notable items as higher credit impairment charges offset underlying profit growth. Rising customer stress and further additions to forward-looking provisions reinforce the cautious tone.

Key Takeaways

• Excluding large notable items, underlying profit rose 6.9% for the year; cash earnings were flat on the same basis.
• Cash return on equity was 11.4%, including the impact of the notable item. The full-year dividend was $1.70, equal to 73.7% of cash earnings excluding the notable item.
• NAB added $103 million to forward-looking collective provisions, taking the balance to $5.4 billion; watch loans and early-stage home loan arrears increased.
• The CET1 ratio was 11.87% at September. A 1.5% discount on the full-year dividend reinvestment plan is expected to lift the pro forma ratio by about 20 basis points to 12.07%.
• NAB expects to reduce its internal workforce by up to 2,500 roles, or about 6%, over fiscal 2027, and materially reduce its use of consultants and external contractors.