Sydney, June 12, 2026, 04:02 (AEST)
- National Australia Bank closed at A$35.68 on the ASX, dropping roughly 1.8%.
- S&P/ASX 200 slipped 0.23% to 8,633.20 as heavyweights in the banking sector pulled the index lower.
- NAB’s margins, credit provisions, and its next trading update are on investors’ watch list after the May half-year result.
National Australia Bank Limited finished the Thursday ASX session at A$35.68, losing A$0.649 or about 1.8%. Sellers were active again in Australia’s major banks. NAB moved between A$35.64 and A$36.14 for the day, market data showed, keeping it near its recent lows.
ASX slips as banks, oil and Middle East tensions drag
The broader Australian market ended down. The S&P/ASX 200 fell 20.10 points, or 0.23%, to 8,633.20. The All Ordinaries was also off 0.23% at 8,836.70. Renewed tensions in the Middle East, higher oil prices, and heavy declines in banks like NAB, Commonwealth Bank, Westpac and ANZ pulled the index lower.
Banks are drawing more attention after rallying through 2025 and early 2026. Reuters said in late May that Australian banks were giving up ground as mortgage growth slowed, loan-loss provisions rose, and rate hikes took hold. That’s after beating the market last year.
Short interest in the sector is back in focus. A report out Thursday said hedge funds have built up almost A$11 billion in short bets against the country’s big four banks—including NAB—citing investor doubts about valuations and housing-market risk.
NAB posted cash earnings of A$2.639 billion and a statutory net profit of A$2.750 billion for its 2026 half-year. Cash earnings excluding large notable items landed at A$3.588 billion, up 2.3% from the September 2025 half. The latest numbers give investors another prompt to watch credit quality.
NAB reported its result was hit by a A$949 million post-tax software capitalisation policy change, but said underlying profit before big one-off items rose 6.4%. CEO Andrew Irvine said the bank is “well placed to navigate a period of increased volatility.” He highlighted gains in business banking, deposits, and proprietary home loans. NAB
Asset quality is still in focus for the stock. NAB took a A$706 million credit impairment charge for the March half, higher than the A$485 million booked in the September 2025 half. The bank said a A$300 million rise in forward-looking provisions was due to possible stress tied to the Middle East conflict. NAB’s common equity tier 1 ratio was 11.65% at March 31, and will be 12.05% pro forma once a discounted and partly underwritten dividend reinvestment plan brings in about A$1.8 billion.
NAB’s first-half cash earnings came in below the Visible Alpha estimate of A$2.93 billion, Reuters reported, with net interest margin moving up 3 basis points to 1.81% and business lending up more than 10%. Markets are watching whether the faster lending can offset higher impairment costs and support earnings growth against macro and credit risk.
NAB is keeping shareholder returns in focus. The bank declared a 2026 interim dividend of 85 Australian cents per ordinary share, fully franked, with payment set for July 2, 2026.
NAB’s 2026 third-quarter trading update is the next scheduled event for the bank, set for release on Monday, August 17, 2026. The ASX will get the announcement that morning, according to the company. Until that update, traders are expected to keep watching daily shifts in bank sentiment, margins, loan numbers, and signs of change in credit provisioning.
