NAB posts 2% cash earnings growth in Q3 to $1.83B
- National Australia Bank reported third-quarter cash earnings of $1.83 billion, driven by lower credit impairment charges.
- The domestic home lending market softened, leading to a 15% decline in application volumes.
- The company stated it is targeting over $450 million in productivity savings for the current financial year.
National Australia Bank (ASX:NAB) logged fiscal Q3 cash earnings to $1.83 billion, up 2% from the previous quarter, driven by lower credit impairment charges.
The company recorded a statutory net profit of $1.81 billion, while net operating income reached $5.5 billion. Underlying profit for the quarter came to $2.9 billion.
The company stated that while business lending rose 2%, domestic home lending applications dropped 15% from the previous quarter.
"Our long-term strategy remains focused on achieving much stronger customer advocacy, greater speed and simplicity, and ongoing technology modernisation," said NAB CEO Andrew Irvine.
Irvine added that the combined impacts of the Middle East conflict, higher domestic interest rates and recent tax changes in the federal budget are creating challenges and uncertainties for NAB customers.
The lender stated it targets over $450 million in FY26 productivity savings and for operating expense growth in FY26 to be less than FY25 growth of 4.6%.
Executives anticipate continuing economic headwinds; following the announcement, the NAB share price was down at $41.37.
Management noted that higher domestic interest rates and tax changes are creating uncertainties for performing customers.
To manage the challenges, the bank maintained a common equity tier one capital ratio of 11.93%.
