Information checked: November 5, 2026, 12:19 p.m. in Sydney and Melbourne, Australian Eastern Daylight Time (AEDT, UTC+11:00), equivalent to November 5, 2026, 01:19 UTC.
National Australia Bank (ASX: NAB) reported A$6.141 billion in cash earnings for the financial year ended September 30, 2026, a 13.4% decline from FY2025. Yet the picture for shareholders is more nuanced: cash earnings excluding large notable items were broadly unchanged at A$7.090 billion, underlying profit before those items increased 6.9%, and the board declared a fully franked final dividend of 85 Australian cents per share.
The immediate question for ASX investors is whether underlying revenue and lending growth can compensate for higher credit impairment charges and restructuring expenses in a softer economic environment. NAB published the FY2026 result on November 5; the figures below are reported results, while the investment implications and FY2027 scenarios are conditional, not predictions of the share price.
The full-year announcement separates statutory profit, management's cash earnings measure, and earnings adjusted for large notable items. Those are not interchangeable. Statutory net profit was A$6.143 billion, while cash earnings were A$6.141 billion. Cash earnings excluding large notable items reached A$7.090 billion, compared with A$7.091 billion a year earlier. This difference matters because the headline 13.4% fall includes the impact of significant charges, whereas the adjusted number gives a different view of the recurring business.
| Metric | FY2026 reported figure | What investors should notice |
|---|---|---|
| Cash earnings | A$6.141 billion | Down 13.4% from FY2025 |
| Cash earnings excluding large notable items | A$7.090 billion | Essentially flat year over year |
| Statutory net profit | A$6.143 billion | Different accounting measure from cash earnings |
| Net operating income | A$22.014 billion | Up 5.8% |
| Net interest margin | 1.80% | Up six basis points |
| Credit impairment charges | A$1.547 billion | Versus A$833 million in FY2025 |
| CET1 capital ratio | 11.87% | Key buffer against financial stress |
| Final dividend | 85 Australian cents per share | Fully franked; FY2026 total 170 cents |
All monetary amounts above are in Australian dollars unless otherwise stated. NAB describes cash earnings as a non-IFRS performance measure, which should be considered alongside statutory results and the reconciliation in its official filings. Investors should not label adjusted earnings as the same thing as audited statutory profit.
Two forces explain much of the disconnect: large notable items and greater provisioning for loans that may not be repaid in full. The group recorded A$1.347 billion in large notable items before tax, or approximately A$949 million after tax, predominantly reflected in expenses. Removing those items leaves broadly stable annual cash earnings, despite growth in underlying profit and revenue.
Credit impairment charges increased from A$833 million in FY2025 to A$1.547 billion in FY2026. A credit impairment charge reflects the estimated cost of lending losses through the income statement; it is not the same as saying every dollar has already been written off or that all borrowers have defaulted. The increase is material because it absorbs revenue gains. NAB also reported additions to forward-looking provisions, reflecting its assessment of a more challenging operating environment.
The bank says higher inflation, multiple cash-rate increases, and a slowing economy are pressuring households and businesses. That management assessment is relevant context, not proof that every NAB borrower is in difficulty. Future credit losses will depend on conditions such as employment, property markets, customer repayment capacity, and business cash flow.
Net interest margin, or NIM, measures net interest income relative to average interest-earning assets. NAB reported a 1.80% NIM for FY2026, an improvement of six basis points. One basis point equals 0.01 percentage point, so six basis points is 0.06 percentage point. The result suggests the bank earned a slightly wider spread on its interest-earning activities, though a higher margin alone does not guarantee stronger bottom-line earnings.
For ASX investors, the more useful test is whether margin gains are sustainable after changes in deposit competition, loan repricing, funding costs, and interest rates. NAB noted that not all of the reported margin movement represented its underlying lending-and-deposit spread: excluding the effect of Markets and Treasury and lower liquid assets, the reported increase was smaller. Watch management's commentary on deposit pricing and customer behavior rather than extrapolating the full six-basis-point gain indefinitely.
Business and Private Banking was an important driver. In its November 5 announcement, NAB said lending balances in that core division increased 10.5% and deposits rose 6.1%. Corporate and Institutional Banking also expanded lending and deposits, while Personal Banking recorded deposit growth. NAB emphasized its position as a major business lender in Australia and New Zealand.
Growth is positive only if it produces returns commensurate with risk. Faster business lending can support interest income, but it also increases the importance of assessing credit quality and borrower concentrations. Investors should compare growth in loan balances with impairment charges, risk-weighted assets, and divisional profitability, rather than treating every increase in lending as automatically beneficial.
NAB said it is simplifying operations and announced plans that could reduce its workforce by up to 2,500 roles by September 2027. These are management plans, not completed reductions as of the result date. Investors should look for the timing and cost of implementation, any customer-service implications, and whether realized productivity benefits are sustained after transition expenses.
NAB declared an 85-cent-per-share final dividend, fully franked, taking dividends attributable to FY2026 to 170 cents per ordinary share, unchanged from the prior year. A fully franked dividend carries Australian company-tax credits under applicable rules; the practical value of franking depends on each investor's tax position. A declared payment is not a guarantee that every future distribution will be maintained.
According to NAB's published financial calendar, the final dividend's ex-dividend date is November 10, 2026; the record date is November 11, 2026; and the planned payment date is December 15, 2026. These dates are Australian market calendar dates and remain subject to official confirmation or change. Investors considering purchases around the ex-dividend date should verify exchange settlement rules and current ASX notices rather than assume a purchase on that date will qualify.
For income-focused shareholders, the more meaningful long-term questions are whether profit consistently covers the dividend, whether capital buffers stay adequate, and whether credit losses require the bank to retain more earnings. A steady dividend during a weaker headline earnings year does not settle those questions on its own.
NAB reported a group CET1 ratio of 11.87% at September 30, 2026, compared with 11.70% at the previous September year-end. CET1 represents high-quality common-equity capital measured against risk-weighted assets. The ratio helps investors assess a bank's capacity to withstand adverse conditions, fund growth, and support distributions.
It is also important to track the capital ratio alongside changes in loan growth, regulatory requirements, provisions, and shareholder distributions. A higher ratio is generally reassuring, but shareholders should examine how it was achieved and whether risk-weighted assets are rising. Capital strength and earnings quality need to be considered together.
There is no single mechanical link between the reported profit figure and the market price. Share prices respond to expectations as well as published results. A bank can report revenue growth and still face investor caution if impairments or future costs exceed what the market anticipated; conversely, convincing evidence that those pressures are temporary could support sentiment. Neither scenario is a verified price forecast.
Five developments warrant close attention over the coming reporting periods:
NAB has signaled a challenging economic year ahead while pointing to underlying operating momentum. Those statements describe management's present view, not a guarantee of FY2027 growth or dividend outcomes. As of the verification time at the top of this article, no intraday ASX share-price move, closing price, or analyst consensus surprise has been independently verified for inclusion here.
Use the original issuer and exchange materials instead of relying solely on summaries: NAB's FY2026 full-year results announcement, NAB's financial results disclosures, the exchange-hosted FY2026 results filing, and NAB's shareholder financial calendar. These primary materials are the appropriate starting point for checking the scope of adjustments, dividend dates, and any later corrections.
Headline cash earnings fell 13.4% to A$6.141 billion. Cash earnings excluding large notable items were broadly flat at A$7.090 billion, so investors should check which profit measure a headline is discussing.
NAB declared a fully franked final dividend of 85 Australian cents per ordinary share. It expects payment on December 15, 2026, subject to the bank's official timetable.
No specific share-price direction follows automatically from the announcement. Investor reactions depend on expectations, future credit losses, margins, costs, capital, and subsequent guidance. This article is general information, not personal financial advice.
NAB's FY2026 results show cash earnings down 13.4%, a steady 85-cent final dividend and higher credit costs. Here's what ASX investors should watch.
Everton cited discipline for one Grealish absence and fitness for another. See what Moyes said, what remains unclear and when the team plays next.
David Jones entered administration on Nov. 5, 2026. Here is what Australian shoppers should know about orders, store sales, returns and gift cards.
Nintendo has confirmed the Ocarina of Time remake for Switch 2. Compare its features with the Nintendo 64 and 3DS versions.
Manchester City beat RB Leipzig 3–2 on Nov. 4. See both clubs’ Champions League points, goal difference, knockout qualification rules and next fixtures.
Los Angeles mayor race results are still being counted. Learn where to check official Bass–Raman vote totals, update times and certification status.
The Met Office is watching a disrupted polar vortex. See what it may mean for UK cold weather and why snow remains uncertain.
Explore Texas governor-elect Gina Hinojosa?s proposals on schools, household payments, electricity and health care, and what would require action.
What does “flipped blue” mean in 2026 elections? Learn how seat flips differ from governor wins or full state control, and how to check official results.
Learn what habibi means, how it differs from habibti and when the Arabic terms of affection are appropriate.
