What were the key profit figures for National Australia Bank (ASX:NAB) in H1 FY26?

NAB reported a statutory net profit of $2.75 billion for the first half of 2026. While cash earnings landed at $2.64 billion due to specific accounting changes, the underlying cash earnings (excluding large notable items) reached $3.59 billion.

Why did NAB’s cash earnings drop despite a multi-billion dollar profit?

The $2.64 billion cash earnings figure was heavily impacted by a $949 million reduction caused by a change in software capitalisation policy. This is a technical accounting adjustment regarding how the bank accounts for technology costs rather than a reflection of poor operational performance.

How is National Australia Bank (ASX:NAB) performing in its core lending markets?

The bank saw significant momentum in its business division, with Australian business lending growing by 5.6%. Additionally, NAB improved its share of proprietary home lending drawdowns to 47.7%, up from 41.4% in the previous period.

What dividend is NAB paying shareholders for the H1 FY26 period?

NAB declared a stable interim dividend of 85 cents per share, which is fully franked. This payment is consistent with the dividend distributed in the previous period, offering reliability for income-focused retail investors.

What does the $1.8 billion Ddvidend reinvestment plan mean for shareholders?

NAB expects to raise approximately $1.8 billion through a partially underwritten DRP, which will help bolster its capital position. For existing shareholders, this provides an opportunity to increase their holdings at a 1.5% discount to the market price.

Is National Australia Bank (ASX:NAB) financially stable in the current economy?

Yes, NAB maintains a healthy balance sheet with a Group Common Equity Tier 1 (CET1) ratio of 11.65% as of the H1 FY26 report. This ratio is a key measure of a bank's financial strength and its ability to absorb potential losses.

National Australia Bank logs steady $2.75B half-year profit

Written by Liezl GambePublished May. 3 2026Last Updated May. 3 2026

National Australia Bank (ASX:NAB) delivered its H1 FY26 financial results, showcasing a statutory net profit of $2.75 billion.

The performance was influenced by a change in software capitalisation policy, which resulted in a $949 million reduction in cash earnings, bringing the final cash earnings figure to $2.64 billion.

Despite the technical adjustment, the bank's underlying momentum remains robust; excluding large notable items, cash earnings reached $3.59 billion, marking a 2.3% increase compared to the second half of 2025.

CEO Andrew Irvine attributed the steady performance to disciplined strategy execution, particularly within the business banking sector.

Australian business lending grew by 5.6%, while proprietary home lending drawdowns improved to 47.7%.

The bank's balance sheet remains well-capitalised, reporting a Group Common Equity Tier 1 ratio of 11.65%.

Shareholders are set to benefit from a stable interim dividend of 85 cents per share, consistent with the previous period.

Addressing the broader economic landscape, Irvine noted that geopolitical tensions have created a more volatile macro environment.

NAB has increased its forward-looking collective provisions by $300 million.

The bank highlighted its community initiatives, including over 200,000 proactive customer contacts and the launch of a specialist community hub in Werribee.

The bank intends to utilise a dividend reinvestment plan, expected to raise approximately $1.8 billion.