National Australia Bank Limited (AU:NAB)
ASX:NAB
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National Australia Bank Limited
(Sydney:NAB)
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Rating:54Neutral
Price Target:
AU$41.00
▼(-15.24% Downside)
Action:ReiteratedDate:05/04/26
The score is held back mainly by volatile cash flow and high leverage in the financial statements, plus a clearly bearish technical setup (below major moving averages with negative MACD). These are partially offset by a supportive dividend yield and an earnings call that showed resilient underlying operating momentum and strong capital/liquidity, albeit with higher provisioning and a cautious near-term outlook.
Positive Factors
Deposit funding strength
A materially higher share of lending funded by customer deposits reduces reliance on wholesale markets and short-term funding. This durable shift improves liquidity resilience, lowers funding-cost volatility, and supports stable lending growth and margin preservation through credit cycles.
Negative Factors
High leverage
Persistently elevated leverage raises sensitivity to credit cycles and funding shocks, requiring larger capital cushions or profit retention to stabilize ratios. High leverage constrains strategic flexibility and increases the incremental funding cost of growth or asset write-downs.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit funding strength
A materially higher share of lending funded by customer deposits reduces reliance on wholesale markets and short-term funding. This durable shift improves liquidity resilience, lowers funding-cost volatility, and supports stable lending growth and margin preservation through credit cycles.
Read all positive factors
National Australia Bank Limited (NAB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$117.34B
Dividend Yield4%
Average Volume (3M)4.14M
Price to Earnings (P/E)11.5
Beta (1Y)1.13
Revenue Growth-8.10%
EPS Growth-10.70%
CountryAU
Employees39,976
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)2.00
Shares Outstanding3,067,597,000
10 Day Avg. Volume4,397,818
30 Day Avg. Volume4,141,772
Financial Highlights & Ratios
PEG Ratio-11.24
Price to Book (P/B)2.15
Price to Sales (P/S)2.24
P/FCF Ratio19.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$39.38Price Target Upside-18.59% Downside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)2.23
Revenue Forecast (FY)AU$22.09B
National Australia Bank Limited Business Overview & Revenue Model
Company Description
National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. It operates through Business and Private Banking; Personal Banking; Corporate and Institutional Banking; New ...
How the Company Makes Money
NAB makes money primarily by providing banking products and services that generate interest income, fee income, and other financial revenues. The largest earnings driver for a traditional bank like NAB is net interest income: it lends money (for e...
National Australia Bank Limited Earnings Call Summary
Earnings Call Date:May 03, 2026
(Q2-2026)
| Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but resilient picture: strong underlying operating performance (underlying profit +6.4%, revenue +3.1%, robust business lending and deposit growth, improved customer advocacy and technology progress) was offset by a large one-off $1.35bn software amortization, higher credit impairment provisions ($300m forward-looking top-up; H1 charge $706m), and elevated uncertainty from the Middle East conflict which may moderate credit growth and pressure asset quality. Capital and liquidity remain well above regulatory minima and management took prudent capital actions (DRP discount and partial underwriting). Given the substantive operating positives tempered by meaningful one-off accounting impacts and increased provisioning for geopolitical-driven risk, the overall tone is balanced and cautious.Positive Updates
Underlying Profit Growth
Underlying profit (ex notables) rose 6.4% half-on-half, driving cash earnings ex-notables up 2.3% despite a large one-off software amortization charge.
Negative Updates
Large One-off Software Capitalization Change
A change in software capitalization policy (raising threshold from $5m to $20m and reducing useful lives) triggered a one-off accelerated amortization charge of $1.35bn booked through operating expenses, causing an 18% decline in statutory profit despite underlying improvements.
Read all updates
Q2-2026 Updates
Positive
Negative
Underlying Profit Growth
Underlying profit (ex notables) rose 6.4% half-on-half, driving cash earnings ex-notables up 2.3% despite a large one-off software amortization charge.
Read all positive updates
Company Guidance
Guidance from the call flagged a more cautious near-term outlook but stressed strong underlying momentum and specific financial actions: cash earnings (ex-notables) rose 2.3% with underlying profit up 6.4% and revenue +3.1%; cash ROE (ex-notables) was 11.6%; NIM rose 3bps (lending margin down 4bps) and CIF charge was $706m (18bps of loans) including a $300m forward-looking provison top‑up; total provisions are now ~1.68% of CRWAs with collective provisions ~1.35% and forward-looking collective overlays +$300m; balance sheet moves include March CET1 11.65% with a 1.5% DRP discount and partial underwrite to raise ~A$1.8bn (~+40bps CET1 to pro forma 12.05%), LCR 132% and NSFR 116%; business lending GLAs +11.5% YoY to A$306bn (business credit growth this half 6.9%), at‑call deposits +A$14bn in H1, transaction account balances +10.8%, proprietary home lending drawdown share up from 41.4% to 47.7% (50% in March), term issuance A$19.6bn H1 (FY target ~A$36bn), investment spend ~A$1.8bn (≈50% expensed H2) and a productivity target >A$450m for the year.National Australia Bank Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 57.93B | 60.25B | 62.16B | 51.90B | 25.87B | 20.92B |
| Gross Profit | 20.81B | 20.02B | 19.88B | 19.81B | 18.20B | 16.88B |
| EBITDA | 9.52B | 10.26B | 11.19B | 11.67B | 10.86B | 10.11B |
| Net Income | 6.10B | 6.76B | 6.96B | 7.41B | 6.89B | 6.36B |
Balance Sheet | ||||||
| Total Assets | 1.14T | 1.11T | 1.08T | 1.06T | 1.06T | 926.19B |
| Cash, Cash Equivalents and Short-Term Investments | 1.77B | 0.00 | 112.94B | 2.89B | 2.67B | 26.96B |
| Total Debt | 190.00B | 289.67B | 281.87B | 289.27B | 290.64B | 276.41B |
| Total Liabilities | 1.08T | 1.05T | 1.02T | 997.69B | 996.22B | 863.41B |
| Stockholders Equity | 60.56B | 62.92B | 61.45B | 61.15B | 59.03B | 62.78B |
Cash Flow | ||||||
| Free Cash Flow | -756.00M | 7.10B | -37.22B | -27.89B | 27.14B | -99.00M |
| Operating Cash Flow | 623.00M | 8.51B | -35.78B | -26.70B | 28.22B | 759.00M |
| Investing Cash Flow | -5.78B | -5.71B | 4.69B | -4.21B | -8.70B | -3.69B |
| Financing Cash Flow | -939.00M | 2.72B | 9.92B | 6.98B | 6.01B | -22.05B |
National Australia Bank Limited Technical Analysis
Negative
48.37
Price Trends
45.50
Negative
43.61
Negative
42.28
Positive
Market Momentum
-0.43
Negative
39.22
Neutral
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NAB, the sentiment is Negative. The current price of 48.37 is above the 20-day moving average (MA) of 43.59, above the 50-day MA of 45.50, and above the 200-day MA of 42.28, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NAB.
National Australia Bank Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$110.73B | 7.39 | 8.30% | 4.53% | -5.34% | -13.04% | |
70 Outperform | AU$294.09B | 12.51 | 13.27% | 3.00% | 0.93% | 5.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | AU$127.89B | 9.87 | 9.55% | 3.90% | -3.87% | 1.20% | |
57 Neutral | AU$6.17B | 6.45 | -1.25% | 5.99% | -2.90% | -117.39% | |
56 Neutral | AU$87.44B | 15.81 | 10.75% | 3.27% | -12.60% | 30.24% | |
54 Neutral | AU$117.34B | 11.52 | 9.88% | 4.00% | -8.10% | -10.70% |
* Financial Sector Average
AU:NAB
National Australia Bank Limited
38.36
4.12
12.02%
AU:ANZ
ANZ Group Holdings
36.79
9.02
32.47%
AU:BEN
Bendigo & Adelaide Bank
10.67
-0.49
-4.36%
AU:MQG
Macquarie Group Limited
239.23
38.30
19.06%
AU:WBC
Westpac Banking
37.44
7.55
25.27%
AU:CBA
Commonwealth Bank of Australia
175.91
13.44
8.28%
National Australia Bank Limited Corporate Events
NAB Posts Strong Half-Year Profit and Lifts Focus on Scam Protection
May 4, 2026
National Australia Bank reported cash earnings of $2,639 million and statutory net profit of $2,750 million for the six months to 31 March 2026, highlighting continued momentum across its operations. The board declared a fully franked 2026 interim...
NAB sets 85c fully franked interim dividend and partially underwrites DRP
May 3, 2026
National Australia Bank has declared a fully franked 2026 interim dividend of 85 cents per ordinary share, payable on 2 July 2026 to shareholders on the register at 8 May, with cash payments made via direct credit in multiple currencies where appl...
NAB Releases 2026 Half Year Pillar 3 Regulatory Disclosure
May 3, 2026
National Australia Bank Limited has released its 2026 Half Year Pillar 3 Report, fulfilling its regulatory disclosure obligations under the Australian Prudential Regulation Authority’s APS 330 standard. The report, covering the period to 31 ...
NAB Sets Out 2026 Half‑Year Results Framework for Analysts
May 3, 2026
National Australia Bank has released materials for its 2026 half‑year results, aimed at a professional analyst audience and presented on a cash earnings basis rather than statutory profit. The documentation outlines key financial performance...
NAB Sets A$0.85 Interim Dividend and Opens DRP Election Window
May 3, 2026
National Australia Bank has declared an ordinary fully paid share dividend of A$0.85 for the six‑month period ended 31 March 2026, maintaining returns to shareholders in line with its regular semi‑annual distribution cycle. The dividen...
NAB lifts underlying profit, provisions and capital amid rising geopolitical risks
May 3, 2026
National Australia Bank reported March 2026 half-year cash earnings of $2.64 billion and statutory net profit of $2.75 billion, with underlying performance lifted by a 6.4% rise in profit once a large software capitalisation adjustment is excluded...
NAB Issues 2026 Half Year Results and Reaffirms Commitment to First Nations Engagement
May 3, 2026
National Australia Bank Limited has released its 2026 half year results announcement, prepared in accordance with Australian Securities Exchange Listing Rule 4.2A. The bank notes that the half year consolidated report should be read together with ...
NAB Lifts Provisions and Tweaks Capital Policy to Shore Up Balance Sheet
Apr 19, 2026
National Australia Bank has moved to bolster its balance sheet in response to heightened market volatility stemming from the conflict in the Middle East, increasing forward-looking collective provisions and adjusting its dividend reinvestment plan...
NAB Reports Minimal Indirect Control Over Its Own Voting Shares
Mar 31, 2026
National Australia Bank has disclosed the proportion of its own voting shares over which its associated entities can control voting or disposal, as required under an exemption from Australian securities law. As at 27 March 2026, the group’s ...
NAB to Redeem A$1.9bn NAB Capital Notes 3 in June 2026
Mar 19, 2026
National Australia Bank has elected to redeem all of its NAB Capital Notes 3 (ASX: NABPF), a A$1.874 billion hybrid capital instrument issued in March 2019, on 17 June 2026 under the optional redemption terms. Each note will be redeemed for A$100 ...
NAB sets June 2026 quarterly distribution on Capital Notes 8
Mar 17, 2026
National Australia Bank has announced a quarterly distribution on its NAB Capital Notes 8 (ASX: NABPK), a perpetual, non-cumulative, redeemable capital note security. The payment applies to the distribution period from 17 March 2026 to 16 June 202...
NAB Sets June 2026 Distribution for Capital Notes 6 Hybrid Securities
Mar 17, 2026
National Australia Bank has announced a quarterly distribution for its NAB Capital Notes 6, a listed hybrid security that offers investors floating-rate returns linked to the three-month Bank Bill Swap Rate plus a fixed margin. The notes form part...
NAB Sets June 2026 Distribution for NAB Capital Notes 5
Mar 17, 2026
National Australia Bank has set the quarterly fully franked distribution for its NAB Capital Notes 5 (ASX: NABPH), a perpetual, non-cumulative capital note, for the period from 17 March 2026 to 16 June 2026. The distribution, which reflects a 5.37...
NAB Sets June 2026 Distribution for Capital Notes 7 at 4.8881%
Mar 17, 2026
National Australia Bank has set the quarterly distribution for its NAB Capital Notes 7, a listed hybrid security, at an annualised rate of 4.8881% for the period from 17 March to 16 June 2026. The payment, fully franked and equating to A$1.2321 pe...
NAB Sets June 2026 Quarterly Distribution for NAB Capital Notes 3
Mar 17, 2026
National Australia Bank has announced the next quarterly distribution on its NAB Capital Notes 3 (ASX: NABPF), a perpetual, non-cumulative, convertible hybrid security linked to the bank bill swap rate. The notes pay a floating margin above the th...
NAB Seeks ASX Quotation for New Shares Issued Under Employee Incentive Scheme
Mar 2, 2026
National Australia Bank has applied for quotation on the ASX of 74,180 new fully paid ordinary shares issued on 23 February 2026 under an employee incentive scheme. The modest size of the issuance suggests a routine capital management action linke...
NAB Issues Unquoted Performance Rights Under Employee Incentive Scheme
Mar 2, 2026
National Australia Bank Limited has notified the market of the issue of 1,417 unquoted performance rights under its employee incentive scheme. These NABAM performance rights were issued on 23 February 2026 and are subject to transfer restrictions,...
NAB Announces Executive Leadership Transition as Veteran Shaun Dooley Plans Retirement
Feb 23, 2026
National Australia Bank has announced changes to its Executive Leadership Team, confirming that long-serving Group Executive Shaun Dooley intends to retire by the end of 2026 after a 33-year career at the bank. Dooley has been Group Chief Risk Off...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.