Aussies adjusting to volatility: business banking giant
Australia’s largest business bank says geopolitical tensions and high fuel prices sparked by the Middle East crisis are creating a volatile macroeconomic environment.
National Australia Bank, one of the big four banks, on Monday reported a 19.3 per cent drop in statutory net profit in the first half of 2026 to $2.75 billion on revenue of $11.16 billion.
Preferred cash net profit, which excludes large items, remained flat at $3.59 billion compared to the same period last year, but was 2.3 percent higher than at the end of fiscal 2025.
NAB’s result was supported by strong growth of 5.4 per cent in its commercial and private banking arm and a higher net interest margin reflecting earnings from its lending activities.
Chief Executive Andrew Irvine said global conflicts, including in the Middle East, continued to contribute to ongoing economic volatility.
“We are hearing that businesses are facing high fuel costs, supply disruptions, inflation and high interest rates and are becoming more cautious about spending and cash management,” he said on Monday.
“But Australians are resilient.
“Many businesses are experienced at managing cost fluctuations and make the necessary adjustments through higher savings and offsets.”
Mr Irvine said NAB was well positioned to weather short-term challenges thanks to its stronger balance sheet.
In April, ahead of its results, NAB warned that its results would be hit by loan impairment charges of $706 million, an increase of around $221 million from the end of the financial year.
The total included a $152 million “economic adjustment” charge to respond to the changing outlook for the Australian economy, which is expected to weaken this year.
Additionally, $201 million has been allocated for potential stress that may arise in energy-related business sectors that are likely to be impacted by conflict-related fuel supply and cost costs.
NAB announced that it will distribute an interim dividend of 85 cents per share, the same as last time.
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