National Australia Bank Limited Q4 2026 Earnings Recap

NAB shares fell 5.6% after earnings, with the likely disappointment in a more challenging near-term outlook and weaker cash earnings: excluding notable items, cash earnings were flat as higher credit impairment charges offset underlying profit growth. Rising customer stress and another increase in forward-looking provisions add to the cautious picture.

Key Takeaways

• Excluding large notable items, underlying profit increased 6.9% for the year, while cash earnings were flat on the same basis.
• Cash return on equity, including the notable item, was stable at 11.4%. The final dividend was $0.85, taking the full-year dividend to $1.70.
• NAB added $103 million to forward-looking collective provisions, bringing the balance to $5.4 billion; watch loans and early-stage home loan arrears have increased.
• The September CET1 ratio was 11.87%; NAB expects a 1.5% discount on its full-year dividend reinvestment plan to lift the pro forma ratio to 12.07%.
• The bank plans to reduce its internal workforce by up to 2,500 roles by September 2027, citing the need to simplify its operating model.