Is National Australia Banks Earnings Beat the Start of a Bigger Rally?
Source: Kapitales Research
Highlights:
Earnings Beat Expectations: Cash earnings came in at AU$2.02 billion at the time of writing, up 15%, while statutory net profit rose to AU$2.21 billion at the time of writing, reflecting strong quarterly momentum.
Revenue and Margin Strength: Total revenue increased 6% at the time of writing, with net interest margin improving to 1.80% at the time of writing, supported by lending growth and stable deposits.
Solid Capital Position: The bank maintained a healthy CET1 ratio of 11.48% at the time of writing, alongside controlled costs and improved asset quality trends.
Strong Quarter Lifts Investor Confidence
National Australia Bank Limited (ASX: NAB) is back in focus after delivering a better-than-expected quarterly result. The stock was trading at a CMP of AU$47.100, up nearly 3.80% at the time of writing, as investors responded positively to the bank’s first-quarter performance. The upbeat numbers have strengthened sentiment around the lender’s earnings resilience amid a competitive banking environment.
Cash Earnings Surprise on the Upside
For the first quarter of FY26, cash earnings rose to AU$2.02 billion at the time of writing, marking a 15% increase compared with the previous half’s quarterly average. Statutory net profit climbed to AU$2.21 billion at the time of writing, reflecting improved operating momentum.
Revenue increased 6% at the time of writing, supported by business lending growth, higher fee income and solid performance in the Markets & Treasury division. Excluding Markets & Treasury, underlying revenue growth stood at 4% at the time of writing.
Net interest margin edged up to 1.80% at the time of writing, while operating expenses remained broadly stable quarter-on-quarter, indicating effective cost discipline.
Capital and Asset Quality Remain Solid
The bank reported a Group CET1 ratio of 11.48% at the time of writing, maintaining a strong capital buffer above regulatory minimums. Credit impairment charges were AU$170 million at the time of writing, while non-performing exposures improved modestly during the quarter.
With steady lending growth, controlled costs and improving asset quality trends, the latest update suggests National Australia Bank may have built a firmer earnings base—raising the question of whether this rally has further room to run.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
x
Daily Dose of Buy, Sell & Hold recommendations before the market opens.
Start Your 7 Days Free Trial Now!
We use cookies to help us improve, promote, and protect our services.
By continuing to use this site, we assume you consent to this.
Read our
Privacy Policy
and
Terms & Conditions
Is National Australia Banks Earnings Beat the Start of a Bigger Rally?
Highlights:
Strong Quarter Lifts Investor Confidence
National Australia Bank Limited (ASX: NAB) is back in focus after delivering a better-than-expected quarterly result. The stock was trading at a CMP of AU$47.100, up nearly 3.80% at the time of writing, as investors responded positively to the bank’s first-quarter performance. The upbeat numbers have strengthened sentiment around the lender’s earnings resilience amid a competitive banking environment.
Cash Earnings Surprise on the Upside
For the first quarter of FY26, cash earnings rose to AU$2.02 billion at the time of writing, marking a 15% increase compared with the previous half’s quarterly average. Statutory net profit climbed to AU$2.21 billion at the time of writing, reflecting improved operating momentum.
Revenue increased 6% at the time of writing, supported by business lending growth, higher fee income and solid performance in the Markets & Treasury division. Excluding Markets & Treasury, underlying revenue growth stood at 4% at the time of writing.
Net interest margin edged up to 1.80% at the time of writing, while operating expenses remained broadly stable quarter-on-quarter, indicating effective cost discipline.
Capital and Asset Quality Remain Solid
The bank reported a Group CET1 ratio of 11.48% at the time of writing, maintaining a strong capital buffer above regulatory minimums. Credit impairment charges were AU$170 million at the time of writing, while non-performing exposures improved modestly during the quarter.
With steady lending growth, controlled costs and improving asset quality trends, the latest update suggests National Australia Bank may have built a firmer earnings base—raising the question of whether this rally has further room to run.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au