Sydney, June 21, 2026, 23:07 (AEST)
- National Australia Bank ended Friday at A$37.74, up 1.1% for the day and around 3.4% higher this week.
- NAB traded ahead of the other big banks on Friday, with the ASX 200 dropping 0.9% that day. The benchmark still finished the week up 0.3%.
- Traders are waiting for May inflation numbers out Wednesday, with jobs, vacancies and spending prints to come Thursday.
National Australia Bank shares rose 3.4% for the week, finishing Friday at A$37.74 after a 1.1% daily gain. The stock moved up while the S&P/ASX 200 dropped 0.9%.
Sydney trading is shut for the weekend, with the market set to open again on Monday. NAB’s rebound is worth watching as higher lending rates, which have been boosting bank earnings, can also slow credit demand and squeeze borrowers.
Traders won’t have to wait long for the next test. May consumer price numbers from the Australian Bureau of Statistics land at 11:30 a.m. AEST Wednesday. On Thursday at the same hour, ABS also drops labour-force, job-vacancy, and household spending data.
RBA keeps cash rate steady at 4.35%, flags inflation concerns The Reserve Bank of Australia left its cash rate at 4.35% on June 16. That follows three hikes earlier this year. The central bank said both headline and underlying inflation were still too high. Annual inflation dropped to 4.2% in April, down from 4.6% in March. Trimmed-mean inflation, which strips out big price jumps, ticked up to 3.4%.
NAB shares outperformed on Friday. Commonwealth Bank edged up 0.1%. ANZ lost 0.3% and Westpac dropped 0.4%. The move stood out with local shares broadly down, hinting it wasn’t just another market rebound.
NAB shares are still down almost 24% from their 52-week high of A$49.45, even after the bounce. The move looks more like a relief rally than a real shift in expectations for the bank’s earnings.
NAB research keeps inflation in the spotlight. Senior economist Antony Kelly said the AI investment boom is lifting global growth but “also adding to inflationary pressures”. The bank sees world growth reaching 3.1% in 2026 and 3.2% in 2027, but flagged uncertainty around the U.S.-Iran agreement. NAB News
NAB’s credit quality is still pressuring results. The bank posted first-half cash earnings of A$2.64 billion in May, coming in under the A$2.93 billion Visible Alpha estimate. The lender recorded A$706 million in credit impairment charges. Net interest margin rose three basis points to 1.81%.
Pressure isn’t just hitting NAB. “Aside from COVID, we cannot recall a time in the past 25 years when the operating conditions for banks have shifted so quickly,” Morgan Stanley banking analyst Richard Wiles said last month. Mortgages make up around 60% of the big four’s total loans, so housing demand matters to their earnings. Reuters
The next move isn’t set. If inflation comes in hotter, talk about more rate hikes picks up, ramping up worries over repayment pressure. Softer numbers on jobs or spending put the focus back on bad loans and cooler lending. New oil supply issues could also push banks to set aside more for possible losses.
NAB said Friday it will spend A$109 million over two years to upgrade 170 of its branches, with 120 of those in regional areas. Executive Paul Carter said customers use the app for everyday banking, but still want personal advice “when it comes to the big decisions”. This week, though, inflation and jobs data in Australia are set to drive the stock. NAB News
