NAB +3.97%: A solid 1Q trading update, with cash earnings lifting meaningfully versus the 2H25 run-rate, supported by underlying profit growth, stable margins and lower impairment charges.
- Revenue +6% (ex-Markets & Treasury revenue +4%)
- Unaudited cash earnings $2.02bn, +15% vs 2H25 quarterly average, and around 10% ahead on a run rate basis for the FY.
- Net interest margin 1.80%, +2bps
- Business & Private Banking revenue growth +3%
Revenue improved on the back of volume growth and stronger fee income, while expenses were broadly contained despite higher technology and personnel costs. NAB reiterated its focus on productivity, targeting >$450mn of savings in FY26 and expense growth below FY25’s 4.6%.
Overall, a steady quarter showing improving earnings momentum, controlled costs and resilient credit quality — with the market likely to stay focused on margin sustainability and execution on productivity targets through the year.
MM has turned more neutral towards NAB above $47
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