NAB Profit Falls 9% as Impairments Rise

National Australia Bank reports $6.14 billion annual profit, down 9 per cent, as credit impairment charges climb to $1.5 billion.

Updated on Nov. 4, 2026 in Corporate Finance

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National Australia Bank reported an annual profit of $6.14 billion, a fall of 9 per cent on last year. Its credit impairment charge rose to $1.5 billion from $833 million.

Why it matters

The higher impairment charge reflects a more challenging economic outlook for the bank, and the job cuts aim to make the bank more efficient in a tougher economy. The results offer a read on pressure across Australia's lending book.

Net interest margin rose 6 basis points to 1.8 per cent, while business loan balances grew 9.8 per cent and offset balances rose 11 per cent over the year. Loans 30 or more days overdue climbed 11 basis points to 1.69 per cent between March and September.

The players

National Australia Bank

National Australia Bank is one of Australia's four major banks, with significant exposure to business and home lending across the country.

The details

NAB's credit impairment charge reflected loan volume growth, asset quality deterioration in business lending, and house price declines affecting its Australian mortgage portfolio. The bank also axed 2500 jobs in October to become more efficient and respond to a tougher economy, while holding its full-year dividend unchanged at $1.70 a share.

March to September 2026: Overdue home loan repayments rose 11 basis points.
October 2026: NAB axed 2500 jobs.
5 November 2026: NAB announced its annual profit results.

Market Dynamics

The rise in impairments comes as the housing market corrects, which the extraction notes poses additional downside risk to growth. Household consumption growth is expected to slow, adding pressure to lending performance across the sector.

Investors tracking Australian bank shares should note the dividend was held at $1.70 a share despite lower profit. Borrowers with overdue repayments or business loans may face tighter credit conditions as impairments rise.

The takeaway

Rising impairment charges and overdue loan repayments are early signals of stress in household and business lending. Readers with mortgages or business debt should review repayment buffers while economic conditions remain uncertain.