National Australia Bank stock holds dividend after FY26 profit decline

National Australia Bank reported lower earnings for the financial year ended September 30, 2026, while keeping its final dividend unchanged. In its results release on November 5, the bank said it was operating in a tougher environment shaped by inflation, higher interest rates, rising living costs and weaker confidence. National Australia Bank said underlying profit excluding large notable items increased 6.9 percent, while revenue rose 5.8 percent.

Reported cash earnings fell 13.4 percent to 6.143 billion Australian dollars, according to the bank's FY26 results materials. Statutory net profit was also 6.143 billion Australian dollars, down 9.1 percent from the previous year. The result reflected higher credit impairment charges and large notable items. The credit impairment charge reached 1.547 billion Australian dollars, compared with 833 million Australian dollars in FY25.

Dividend Maintains Shareholder Return

The board declared a fully franked final dividend of 85 Australian cents per ordinary share. Together with the interim payment, the full-year dividend totals 1.70 Australian dollars per share. The shareholder record date is November 11, 2026, and the payment date is December 15, 2026.

The distribution provides continuity for investors despite the decline in reported earnings. NAB said its balance sheet had strengthened during the year, with the common equity tier 1 ratio at 11.87 percent on September 30. The pro forma ratio, including the expected effect of the dividend reinvestment plan, was 12.07 percent.

Bank Targets Simpler Operations

Chief executive Andrew Irvine said lending and deposit growth supported the bank's strategy. Business and Private Banking increased lending balances by 10.5 percent and deposits by 6.1 percent, while Corporate and Institutional Banking lifted lending by 9.0 percent and deposits by 5.5 percent. Personal Banking deposits rose 7.0 percent.

Management is also preparing for a more demanding operating period. NAB plans to simplify its operating model and reduce its workforce by up to 2,500 roles by September 2027. The bank said the changes should reduce duplication, speed decisions and direct investment toward customer priorities. It expects underlying cost growth of less than 3 percent in FY27 while keeping investment spending at a similar level to FY26.

National Australia Bank stock traded at 23.87 euros on Lang & Schwarz at 09:30 CET on Wednesday, November 11, 2026.

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