NAB slides as profit misses and credit costs climb

The move and the miss

NAB dropped as much as 6.3% in early trade, its sharpest intraday slide since April 2025, after reporting weaker results. By 10:21 a.m. in Sydney, the stock was 5.5% lower, extending its year-to-date loss to more than 8%.

Full-year cash earnings came in at A$6.1 billion, roughly 13% lower than a year earlier and short of the A$6.6 billion average estimate compiled by Bloomberg. Management also lifted the credit impairment charge to A$1.5 billion, adding to the earnings drag.

What drove the result

The corporate and institutional banking arm and the New Zealand business were soft spots, weighing on performance. Offsetting that, personal banking together with business and private banking helped support the group's earnings.

Costs moved higher. Total expenses increased 18%, and within personal banking, expense growth reflected investment in proprietary lenders and frontline bankers. Business banking delivered strong earnings growth on higher underlying profit, though some of that strength was eroded by bigger credit impairment charges.

Market setbacks often prompt investors to rethink tools that sharpen decision making. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.

Strategy, backdrop and CEO's take

Last month, NAB said it would remove up to 2,500 roles, or about 6% of its workforce, to steer through a tough setup that includes a slow economy and higher interest rates. More expensive borrowing has squeezed household and business budgets and deepened a housing downturn, which dents banks' lending prospects.

"During the year we made a number of changes to better position NAB for risks and opportunities in an evolving environment," Chief Executive Officer Andrew Irvine said. "Our business divisions are getting stronger, despite competition, strategic disruption and a challenging environment." On the cuts, he added, "These are difficult decisions that impact our colleagues - and we are treating them with care, with dignity and with respect." Irvine said, "This will better position NAB to respond to customer expectations, to rising competition and to rapid technological change, as well as to navigate a softening economy," and "The actions we've taken reflect our expectation of a tough year ahead."

Why it matters for your portfolio

In plain English: earnings fell short, credit costs rose, and expenses are running hotter while the bank refocuses for a tougher cycle. The mix matters too, with strength in personal, business and private banking offset by weaker corporate and New Zealand results. If you own Australian banks, watch how higher rates, tighter budgets, and housing pressures flow through to impairments and margins over the next year.

Exploring smart technologies can help investors find clearer signals and better discipline. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.