National Australia Bank stock flags higher costs after FY26 result

Published on 11/06/2026 at 09:49 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

National Australia Bank stock enters FY27 with a steady full-year dividend. Management is targeting simpler operations as economic pressure builds.

NAB FY26 result and FY27 priorities

Underlying profit rose 6.9 percent excluding the large notable item announced at the half.
NAB declared an 85 Australian-cent final dividend, taking the full-year payout to 1.70 Australian dollars per share.
The bank plans to simplify its operating model and reduce its workforce by up to 2,500 roles by September 2027.

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National Australia Bank announced its FY26 results on Thursday, November 5, as higher costs and a tougher operating backdrop tested the lender's earnings. In its full-year results announcement, NAB said underlying profit excluding the large notable item announced at the half increased 6.9 percent, while revenue grew 5.8 percent.

Chief Executive Andrew Irvine said the bank had delivered stronger underlying momentum despite higher inflation, five cash-rate increases, rising living costs and global uncertainty. NAB said costs increased 4.5 percent and net interest margin improved, supported by higher volumes and stable margins.

Dividend holds as pressure rises

The board declared a final dividend of 85 Australian cents per share. That lifted total FY26 dividends to 1.70 Australian dollars per share, keeping shareholder distributions steady while the bank navigates weaker confidence among households and businesses.

The result also underlined the importance of NAB's business-banking franchise. Business and Private Banking lending balances increased 10.5 percent and deposits rose 6.1 percent. Corporate and Institutional Banking lending grew 9.0 percent, while deposits increased 5.5 percent. In Personal Banking, deposits rose 7.0 percent, and proprietary channels accounted for 53 percent of new Australian home lending in the second half.

For investors, the combination of revenue growth and higher costs leaves execution as a central issue for FY27. NAB said it needs to simplify its operating model, reduce duplication and speed up decisions while continuing to invest in customer-facing businesses and technology.

Workforce changes shape outlook

NAB recently announced plans to reduce its workforce by up to 2,500 roles by September 2027. Irvine said the changes were intended to strengthen the bank's risk posture, direct investment toward customer priorities and improve its ability to respond to competition and technological change.

The bank described the outlook as challenging but said it remained optimistic about Australia's longer-term prospects. It enters FY27 with established strategic priorities and a focus on business banking, deposits and proprietary home lending. The scale and timing of the operating changes will remain important for margins and cost control.

National Australia Bank stock traded at 24.55 euros on Lang & Schwarz at 9:38 a.m. CET on Friday, November 6. Investors can follow the real-time quote of National Australia Bank stock.