Sydney, March 28, 2026, 09:16 (AEDT) 1
- National Australia Bank shares settled at A$41.99 on Friday, slipping 1.34%. Earlier in the session, the stock dipped to A$41.90—its lowest point in a month. 2
- Australia’s Finance Sector Union reports that NAB wants to cut 447 positions while creating 277 new roles onshore, which shakes out to a net loss of roughly 170 Australian jobs. The bank also aims for 237 new roles offshore. 3
- NAB bumped up its variable home loan rates by 0.25 percentage points on Friday, following the Reserve Bank of Australia’s decision to push the official cash rate up to 4.10% back on March 17. 4
National Australia Bank shares settled at A$41.99 on Friday, slipping 1.34%. Earlier in the session, the stock hit A$41.90—the lowest point in a month. Pressure built late in the week, after the bank raised mortgage rates and Reuters flagged a planned workforce shakeup. 2
Why it matters now: NAB shares have fallen 9.93% in the last week and 14.38% during the past month, dropping from A$49.02 on Feb. 27 to A$41.99 as of Friday. The selloff comes as the RBA’s tightening cycle picks up again, while rising oil prices are adding pressure to bank margins and raising questions about bad debts. 5
The restructuring isn’t finalized yet. According to Australia’s Finance Sector Union, NAB is looking at 447 job cuts and 277 new domestic positions, which works out to a net local reduction of roughly 170 roles. Another 237 jobs are set to go offshore, mostly to India and Vietnam. NAB wouldn’t give numbers, sticking to comments about creating a “modern workforce.” Elsewhere in the sector, both ANZ and Commonwealth Bank have rolled out layoffs in recent months. 3
NAB will bump up its variable home loan rates by 0.25 percentage points, matching the RBA’s move on March 17. The change kicks in Friday. “We know another rate increase will be challenging for many Australians, particularly in the context of ongoing cost-of-living pressures,” said Ana Marinkovic, group executive for personal banking at NAB. 4
Bank investors are staring down the familiar risk-reward equation, only with the stakes dialed up. Elevated rates help banks fatten their net interest margin—the difference between earnings on loans and what they shell out for funding—but those same rates can put a pinch on borrowers. This week, the RBA flagged another worry: a drawn-out Middle East war could slow growth and unsettle inflation expectations. 6
Back in February, Australia’s top business lender posted first-quarter cash earnings of A$2.02 billion—a 16% jump on the year. Net interest margin inched up to 1.80%. Chief Executive Andrew Irvine called NAB “well placed to manage our bank for the long term and to support our customers.” That was the story then. 7
The latest update closed out a strong run of earnings for Australia’s major banks. Commonwealth Bank delivered record first-half cash earnings. Westpac and ANZ both topped forecasts in their quarterly reports, highlighting just how fast sentiment can pivot as the macro environment shifts. 7
There’s a more cautious tone creeping in. Morgan Stanley’s Richard Wiles cut his rating on NAB to underweight, downgrading the broader banking sector, according to a report this week from The Australian Financial Review. 8
The worry is straightforward: if margins fail to expand enough, weaker credit quality could bite harder. Sustained fuel prices and a pickup in arrears—particularly in NAB’s core business lending—raise the risk that Friday’s closing price isn’t the bottom. 6
