National Australia Bank said a year of business lending strength was offset by rising technology and bad debt costs as it posted an adjusted net profit up 1 per cent to $6.76 billion on revenue up 1.2 per cent to $20.8 billion for the 12 months ending September 30, 2025.
Its statutory net profit slipped 0.2 per cent to $7.09 billion just shy of analysts’ expectations.
The lender will pay a final dividend of 85 cents per share for the six months ending September 30 to take full year dividends to $1.70 per share flat on the prior financial year. Earnings per share climbed 1.1 per cent to $2.32 as the bank’s dividend payout ratio finished almost flat at 73.3 per cent of earnings.
“We are making good progress on our key priorities of growing business banking, driving deposit growth and strengthening home lending,” said chief executive Andrew Irvine.
The bank’s return on equity dropped 0.2 per cent to 11.4 per cent, versus 11.6 per cent in the financial year 2024. Bad debts booked in the financial year 2025 rose to $833 million, versus $728 million in the prior financial year.
The country’s largest business lender said total profits in its core business and private banking segment climbed 1.6 per cent to $3.33 billion.
Total business lender balances grew by 5.8 per cent over the second half of its financial year, a result it said was its strongest growth in more than three years.
The group said it’s seeing signs the Australian economy has improved over the six months to September 30, although rising energy costs are hurting households and businesses.
More to come…
https://thewest.com.au/business/nabs-profit-stable-as-business-banking-strength-offset-by-rising-bad-debts-tech-costs-c-20591636
