NAB profit falls to $6.1 billion, overdue home loan repayments tick up

November 5, 2026 — 8:50am

National Australia Bank has posted a $6.14 billion profit as overdue home loan repayments have ticked up.

On Thursday, the bank announced its annual profit figure was 9 per cent lower than last year but that its net interest margin – a key measure of profitability – increased by 6 basis points to 1.8 per cent.

The country’s biggest lender to businesses grew its market share in business loans with balances growing 9.8 per cent over the year.

NAB chief executive Andrew Irvine said the economic outlook remained uncertain with global events weighing on confidence and many households and businesses managing higher living and operating costs.

“Household consumption growth is expected to slow, and the downturn in the housing market is likely to weigh on activity,” the bank said. “Cost pressures continue to post a material risk to the economy, while the correction in the housing market poses some additional downside risk to growth.”

The bank said household savings buffers remained strong with a low number of home loan borrowers in negative equity and an 11 per cent increase in offset balances over the year.

However, NAB said arrears had deteriorated across the second half of the year, with loan repayments 30-days or more overdue climbing 11 basis points to 1.69 per cent between March and September this year.

NAB’s credit impairment charge was $1.5 billion compared to $833 million last year reflecting “a more challenging economic outlook”, growth in the volume of loans, asset quality deterioration in business lending and the impact of house price declines on its Australian mortgage portfolio.

In October, NAB axed 2500 jobs in a move aimed at making the bank more efficient and responding to a tougher economy.

The bank left dividends for the full-year unchanged at $1.70 a share.

More to come

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Millie Muroi is the economics writer at The Sydney Morning Herald and The Age covering workplace and economics. She was formerly an economics correspondent based in Canberra’s Press Gallery and the banking writer based in Sydney. Instagram/TikTok: @millie.muroiConnect via X or email.

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