NAB profit falls 9% as loan loss charges jump to $1.5 billion
NAB's annual profit dropped to $6.14 billion, down 9%, due to higher loan loss charges reflecting tougher economic conditions.
National Australia Bank reported statutory profit of $6.14 billion for the fiscal year ending September 30, marking a 9.1 per cent drop from the previous year. Cash earnings fell 13.4 per cent.
The bank booked $1.5 billion in loan loss charges, nearly double the $833 million from 2025, to cover expected defaults in a slowing economy. NAB cited slowing growth, falling house prices, higher interest rates and inflation as reasons for the increase.
Despite the profit decline, the bank gained market share in business lending and total deposits rose 5.2 per cent. In October, NAB announced plans to cut 2,500 jobs as part of a restructure.
- $6.14 billion
- Statutory profit
- 9.1 per cent
- Profit decline
- $1.5 billion
- Loan loss charges
- 2,500
- Job cuts announced
Why it mattersThe jump in loan loss charges signals the banking sector's concern about borrowers struggling under economic pressure, a warning sign for the broader economy.
AustraliaAustralians with mortgages and business loans are being priced into a tighter lending environment as banks prepare for more defaults.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
