National Australia Bank profit falls to $6.14bn amid rising bad debts

Summarised from 2 outlets · 4 reports · Updated 5 Nov, 04:58 · Archive

National Australia Bank reported full-year profit of $6.14bn, down 9.1 per cent, with credit impairment charges rising to $1.5bn.

National Australia Bank reported full-year profit of $6.14bn for fiscal 2026, down 9.1 per cent from $6.75bn the previous year. The bank cited higher credit impairment charges and increased provisions for bad debts as reasons for the fall. Cash earnings dropped 13.4 per cent.

The bank's total credit impairment charge, including top-ups to future provisions, reached $1.5bn, up from $833m in fiscal 2025. This comprised individually assessed charges of $1.1bn and collective forward-looking provision charges of $464m. Chief executive Andrew Irvine said the bank had 'strengthened provisioning to reflect a more challenging environment of slowing growth, declining house prices, higher interest rates and inflationary pressures'.

When large items were excluded, underlying profit rose 6.9 per cent and revenue grew 5.8 per cent. The bank's Australian business lending balance rose 9.8 per cent during the year. The board declared a final dividend of 85 cents per share.

Mr Irvine warned of economic headwinds ahead. He said the Reserve Bank was likely to keep interest rates on hold but that 'cost pressures continue to pose a material risk to the economy, while the correction in the housing market poses some additional downside risk to growth'. He added that customers had so far remained resilient and household savings buffers were still high.

How it is being reported

• Big bank's profit drops with lift in loan loss chargesNational Australia Bank, which has a major focus on business banking, has delivered a fall in annual profit and pointed to a slowing economy and credit risks.Perth Now · 4 Nov, 22:14
• Big bank's profit drops with lift in loan loss chargesNational Australia Bank, which has a major focus on business banking, has delivered a fall in annual profit and pointed to a slowing economy and credit risks.The West Australian · 4 Nov, 22:14
• National Australia Bank records $6.1bn profit as boss Andrew Irvine hails business growthOne of Australia’s big four banks has posted its full-year profit, with its chief executive declaring business divisions are “getting stronger” despite a challenging environment.The West Australian · 4 Nov, 22:08
• National Australia Bank records $6.1bn profit as boss Andrew Irvine hails business growthOne of Australia’s big four banks has posted its full-year profit, with its chief executive declaring business divisions are “getting stronger” despite a challenging environment.Perth Now · 4 Nov, 22:08

In this story: National Australia Bank · Andrew Irvine · Australia

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