National Australia Bank’s Q3 cash earnings rise as lower impairments offset slower home lending
It posted cash earnings of A$1.83 billion (US$1.30 billion) for the three months ended Jun 30
Published Mon, Aug 17, 2026 · 08:17 AM
NATIONAL Australia Bank reported a slight increase in its third-quarter cash earnings on Monday (Aug 17), primarily driven by lower credit impairment charges and lending volume growth.
The country’s top business lender posted cash earnings of A$1.83 billion (US$1.30 billion) for the three months ended Jun 30, 2 per cent higher than the average of the prior two quarters, excluding one-off items.
NAB logged a 15 per cent decline in Australian home loan applications in the third quarter compared with the second quarter, reflecting subdued demand in the wake of Australian tax reforms intended to improve housing affordability.
“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,” said CEO Andrew Irvine.
The bank said its net interest margin for the quarter was 1.79 per cent. The bank’s common equity tier 1 ratio, a key measure of the bank’s financial strength used by regulators, slipped to 11.93 per cent in the third quarter, from 12.14 per cent last year.
“We continue to target productivity savings of more than A$450 million for FY26 and for operating expense growth in FY26 to be less than FY25 growth of 4.6 per cent,” the lender added.
NAB brings the curtain down on the August earnings season for major Australian banks that was marked by growing anxiety over the repercussions of the scrapping of lucrative property investment tax concessions.
The country’s “Big Four” banks, which write the majority of the A$2.4 trillion in mortgages, reported double-digit slowdowns in home loan applications since the tax changes announced in May, with Commonwealth Bank of Australia, the country’s biggest home lender, like NAB reporting a 15 per cent decline. REUTERS
