NAB's Annual Profit Falls 2.9% Amid Higher Costs, Credit Impairments

By Stuart Condie

SYDNEY--National Australia Bank held its dividend steady, even as its annual profit slipped 2.9% amid higher operating costs and credit impairment charges.

Australia's third-largest bank by market capitalization on Thursday reported a net profit for the 12 months through September of 6.76 billion Australian dollars, or about US$4.39 billion. That compared with A$6.96 billion a year earlier.

Net operating income rose 2.9% to A$20.81 billion, but net operating expenses increased by 4.6% over the same period to A$9.85 billion. Credit impairment charges jumped 14% to A$833 million.

Net interest margin--a key indicator of lending profitability--rose by three basis points to 1.74%. Cash earnings, which are closely watched by analysts, were broadly flat at A$7.09 billion.

The lender declared a dividend of 85 Australian cents, the same as a year ago.

The average analyst forecast had been for statutory net profit to grow 0.4% to A$6.99 billion, according to data compiled by Visible Alpha. Consensus had been for a net interest margin of 1.71%.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

November 05, 2025 16:41 ET (21:41 GMT)