This report does not constitute a rating action. SYDNEY (S&P Global Ratings) May 4, 2026--National Australia Bank Ltd. (NAB) will maintain its robust credit standing, supported by its strong balance sheet. NAB (AA-/Stable/A-1+), one of Australia's four major lenders, today announced cash earnings of A$2.6 billion for the six months ended March 31, 2026, down 26% from the prior comparative period. Accelerated amortization of the group's software was the primary driver. Higher impairment charges weighed on NAB's performance. Credit impairment charges increased by 6 basis points to 0.18% of gross loans and advances (annualized for the half year). Higher forward-looking collective provisions related to potential difficulties in fuel-sensitive sectors and costs related to the Middle East conflict drove the increase.
