National Australia Bank (NAB) H1 2025 earnings summary

Executive summary

• Cash earnings and return on equity increased in a challenging environment, supported by strong capital, provisioning, and liquidity.

• Strategic focus on business banking, deposits, and proprietary home lending is delivering early positive results, with ongoing technology modernization.

• Completed all required activities under the AUSTRAC Enforceable Undertaking, with continued investment in financial crime controls.

• Australia is well positioned amid global uncertainty, with moderating inflation and resilient economic growth.

• NAB's Pillar 3 report details capital, risk, and liquidity metrics under revised APS 330 standards, with comparative disclosures.

Financial highlights

• Cash earnings rose 0.8% half-on-half to $3,583m; statutory profit down 1.7% to $3,466m, mainly due to non-repeat of prior gains.

• Underlying profit up 1.9% half-on-half to $5,463m; revenue up 1.7%, costs up 1.4%.

• CET1 capital increased to $51.2bn, with a ratio of 12.01%; total capital ratio at 21.02%.

• Interim dividend of AUD 0.85 per share, payout ratio at 72.7% of cash earnings.

• Net stable funding ratio at 119% and liquidity coverage ratio at 139%, both well above regulatory minimums.

Outlook and guidance

• Opex growth expected to be lower than FY24's 4.5%; investment spend guidance at approximately AUD 1.8 billion for FY25, with an OPEX ratio of about 40%.

• Productivity benefits targeted at over AUD 400 million.

• APRA's loss-absorbing capacity requirement will rise to 4.5% of RWA in 2026, with Additional Tier 1 capital phased out by 2027.

• RBNZ and APRA to review capital and liquidity standards in 2025.

• Maintaining prudent balance sheet and cost discipline to support growth and customer needs.