NAB releases Q3 2026 trading update

17 August 2026 
Financial Results

NAB today released its third quarter trading update.

On the results, NAB Group CEO Andrew Irvine commented:

"NAB's 3Q26 cash earnings increased 2% compared with the 1H26 quarterly average excluding the impact of the Large Notable Item (LNI) in 1H26, primarily driven by lower credit impairment charges (CICs). Underlying profit was stable over the period with good volume growth and well managed margins offset by higher costs which were impacted by seasonality and the flow-on impacts of changes to our software capitalisation policy in 1H26.

We have made further progress this quarter across our key priorities of growing business banking, driving deposit growth and strengthening proprietary home lending. Australian business lending rose 2% including 4% growth from Business & Private Banking (B&PB). Australian home lending grew in line with system excluding the Advantedge run-off(2), with drawdowns via proprietary channels improving from 47.7% in 1H26 to 50.9% in 3Q26(3). Deposit balances rose 2% including 3% growth in B&PB transaction account balances (excluding offsets). 

The combined impacts of the Middle East conflict, higher domestic interest rates and recent tax changes in the Federal Budget are creating challenges and uncertainties for our customers. While the ratio of non-performing loans declined over 3Q26, watch loans were higher reflecting current and potential stress impacting performing customers. Business credit growth has remained robust at this stage, but the Australian home lending market softened in 3Q26 with our applications down 15% compared with 2Q26.

NAB is well placed to manage through this period and support our customers. Our ratio of collective provisions (CP) to credit risk weighted assets (CRWA) sits at 1.36% including almost $2 billion of forward-looking provisions for potential stress in the outlook. Our CET1 ratio of 11.93% compares with NAB's operating target of greater than 11.25%. We continue to target productivity savings of more than $450 million for FY26 and for operating expense growth in FY26 to be less than FY25 growth of 4.6%(4).

Our long term strategy remains focused on achieving much stronger customer advocacy, greater speed and simplicity, and ongoing technology modernisation. This is expected to deliver sustainable growth and attractive shareholder returns."

Read the full ASX announcement.

Read the full Q3 trading report and Supplementary Disclosures.