National Australia Bank (NAB) profits surged last quarter amid solid growth in both loans and deposits, with shares reaching record highs today.
Unaudited cash earnings rose 16% year-over-year to A$2.02 billion in the December quarter. Underlying profit was up 11% to $3.1 billion, and statutory net profit spiked 30% to $2.2 billion.
“We have started FY26 strongly. Underlying profit rose 12% compared with the 2H25 quarterly average, driven by increases across each of our customer facing divisions and a supportive Australian economic environment,” said NAB CEO Andrew Irvine.
“Pleasingly, asset quality outcomes also improved over 1Q26 and we have maintained appropriate balance sheet settings.”
Total gross loans and acceptances increased 6% to $792.5 billion. Business loans grew by 7% to $336.2 billion, while housing loans were up 5% to $442.4 billion.
Customer deposits climbed 6% to $667.5 billion.
The bank’s Common Equity Tier 1 ratio was 11.48%, falling from 11.70% in the September quarter. This was partly due to payments of its FY2025 final dividend, NAB said.
Net interest income increased by 10% to $4.6 billion. Operating income was up 8% to $5.6 billion, while operating expenses grew by 5% year-over-year.
NAB (ASX: NAB) shares had climbed 5% to $47.62 by 12:35 pm (AEDT), and reached a new high of $47.96 earlier in the trading session. Its market capitalisation is $146.08 billion.
