Strong Balance Sheet and Revenue Growth
NAB's full year 2025 results reflect higher underlying profit supported by a strong balance sheet and revenue growth in the second half. Australian business lending balances increased by 5.8% in the second half, marking the strongest half-yearly improvement in 3.5 years.
Improved Cash Earnings Stability
Cash earnings were stable over the year, with a cash return on equity of 11.4%. A final dividend of $0.85 brings the total dividend for the year to $1.70, representing 73.3% of cash earnings, in line with the target payout policy of 65% to 75%.
Successful Strategy Implementation
NAB's refreshed strategy aims to strengthen customer advocacy, with improvements in customer advocacy metrics and strategic NPS scores. The bank reported improved outcomes in 12 out of 20 must-win battles for customer experience.
Strong Deposit Growth
Deposits fully funded GLA growth this year, and the share of total lending funded by customer deposits increased to 84%, a meaningful improvement from 70% in 2019.
Technology Modernization Progress
71% of NAB's technology workforce are NAB colleagues, and 90% of apps run on modern infrastructure in the cloud. The bank is also reducing the number of products and processes to simplify operations.
Business Banking Leadership
NAB is the largest business lender in Australia, with a 22% share of total business lending and a 28% share of lending to small and medium-sized businesses.
Capital and Liquidity Position
NAB's common equity Tier 1 capital ratio is 11.7%, comfortably above the target. The liquidity coverage ratio and net stable funding ratio are well above minimum requirements.