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National Australia Bank Limited (ASX:NAB)

ALERT: Price-sensitive ASX Announcement for NAB
Current share price for NAB : $41.580 2.39 (6.10%)+
Announcement
Release
18 Aug 2025 8:00AM
Price at Release
$39.190
Full Release
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Summary
In its 2025 Third Quarter Trading Update, National Australia Bank Limited (NAB) reported a 2% increase in underlying profit, driven by strategic execution and focus on key priorities. Despite a 4% rise in business lending and a 2% increase in Australian home lending, overall deposits remained stable, though they grew 6% over nine months. NAB's credit impairment charges rose to $254 million, attributed mainly to increases in individually assessed charges within business lending in Australia and New Zealand. Although the Group CET1 capital ratio slightly increased to 12.14%, a growth in Risk-Weighted Assets offset some earnings benefits. NAB also continues to invest in efficiency improvements, targeting $400 million in savings for FY25, despite a 4.5% expected rise in operating expenses due to payroll issue remediation costs. The bank maintains strong asset quality and provision coverage, with non-performing exposures slightly increasing. NAB's commitment to improving compliance has led to the cancellation of its Enforceable Undertaking by AUSTRAC. Additionally, NAB is actively supporting customers with refurbished branches and new payment solutions, while providing disaster relief grants.
Key Points
  • 2% increase in underlying profit reported for 3Q25.
  • Business lending grew by 4%, and Australian home lending by 2%.
  • Credit impairment charges increased to $254 million.
  • Risk-Weighted Assets grew, affecting capital ratio benefits.
  • NAB targets $400 million in efficiency savings for FY25.
  • Operating expenses expected to rise due to remediation costs.
  • Enforceable Undertaking with AUSTRAC cancelled.
  • Asset quality remains strong, with slight increases in non-performing exposures.
  • Refurbished 100 branches and launched new payment solutions.
  • Provided nearly $6 million in disaster relief grants.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.