National Australia Bank (NAB) H2 2025 earnings summary

Executive summary

• Underlying profit increased 1.3% in FY25, supported by strong revenue, volume growth in 2H25, and a robust balance sheet, while cash earnings were stable at $7,091m and statutory net profit was $6,759m.

• Strategic focus on business banking, deposit growth, and proprietary home lending drove operational momentum and sustainable returns.

• Continued investment in technology, digital transformation, and AI to enhance customer and colleague experiences.

• The first year of the Refresh strategy delivered positive outcomes in customer advocacy and operational simplification.

• Final dividend set at 85 cents per share, fully franked, totaling 170 cps for FY25.

Financial highlights

• Revenue grew 2.9% year-over-year, with net interest income up 3.8% and underlying profit at $10,965m.

• Net interest margin rose 8 bps in 2H25 to 1.74%; group NIM was 1.70% (flat HoH).

• Cash earnings decreased 0.2% year-over-year, with statutory profit down 2.9%.

• Operating expenses increased 4.6%, including $130m in payroll review and remediation charges.

• Credit impairment charge rose to $833m, with total provisioning at 1.64% of credit risk-weighted assets.

Outlook and guidance

• Australian GDP growth forecast at 2% in 2025 and 2.3% in 2026, with business credit growth expected at 7.5% and housing credit at 6% in 2026.

• Opex growth expected to moderate in FY26, with targeted productivity benefits of over AUD 450 million and investment spend estimated at $1.8bn.

• Margins expected to benefit from replicating portfolios, with a stable interest rate environment anticipated in 1H26.

• Migration of Citi Consumer Business to a new platform on track for completion by December 2025.

• Focus on executing strategy, technology modernization, and disciplined cost management.