Deposit Growth Leads the Sector but Credit Costs Cloud the Outlook
- NAB delivered FY25 cash earnings of AU$7.09B, essentially flat on FY24, with record Q1 FY26 performance showing AU$2.2B quarterly profit
- Deposit growth accelerated to +7% with personal banking deposits +9.2%, offsetting NIM pressure and demonstrating strong customer franchise
- Loan impairment charges jumped 14% to AU$833M, signalling early credit stress as unsecured lending deteriorates and business banking hits pockets of stress
- Dividend increased by 1 cent to 170 cents per share fully franked (4% yield), maintaining conservative capital allocation amid uncertain credit environment
- Stock down 1.8% as valuation at 18x forward P/E (4% yield) appears stretched relative to 5% annual EPS…
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