National Australia Bank (ASX:NAB) has kicked off FY26 with reporting an unaudited statutory net profit of $2.21 billion for the first quarter.
Under the leadership of CEO Andrew Irvine, the bank saw its cash earnings climb to $2.02 billion, marking a robust 15% increase compared to the quarterly average of the second half of 2025.
The financial uplift was primarily driven by a 12% rise in underlying profit, bolstered by volume growth and higher fees across NAB's customer-facing divisions.
The bank's net interest margin saw a modest improvement of 2 basis points to 1.80%, a result of improved deposit outcomes that managed to offset intense lending competition.
Strategic focus areas showed healthy expansion, with Australian business lending rising by 2% and home lending growth improving via proprietary channels.
Despite inflationary pressures, NAB managed to keep expenses "broadly flat" by offsetting increased technology and personnel costs with productivity benefits and lower remediation expenses.
The bank is currently targeting over $450 million in productivity savings for the full year.
Beyond the balance sheet, NAB highlighted its commitment to social responsibility, providing over $1 million in disaster relief and community grants following recent severe weather events.
With a Common Equity Tier 1 ratio of 11.48%, Irvine expressed confidence in the bank’s trajectory.