NAB +1.61%: NAB’s 1H FY25 result was broadly in line with estimates across the board, beating consensus net profit after tax (NPAT) by 2.9%, driven primarily by a lower-than-expected credit impairment charge.
- Net profit after profit (NPAT) $3.58 billion, +1% y/y, estimate $3.47 billion
- Net interest margin 1.7% vs. 1.72% y/y
- Interim dividend per share $0.85 vs. $0.84 y/y, estimate $0.85
Pre result there was a degree of speculation that Commonwealth (CBA) was taking market share from NAB in the business banking segments given the former’s continued focus and investment in the space, this result put that concern to bed (for now). Underneath the beat was a slightly softer result, the market is unlikely to adjust for the seasonally lower costs, and higher treasury revenue, instead focusing on the headline figures. The bank is showing a continued discipline in cost, guiding to beat cost growth of +4.5% over 2H25, we like the resilience but prefer CBA and WBC.
MM is cautiously bullish NAB
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