NAB Q3 cash earnings rose 2% as home loan applications fell 15%
Why it matters: Australia’s big banks are seeing a double-digit mortgage slowdown after May tax changes aimed at housing affordability.
National Australia Bank posted third-quarter cash earnings of A$1.83 billion for the three months ended June 30, up 2% from the average of the prior two quarters excluding one-off items, as lower credit impairment charges and lending growth offset a sharp drop in home lending demand. NAB said Australian home loan applications fell 15% from the second quarter after tax reforms in the federal budget. Its net interest margin was 1.79%, while its common equity tier 1 ratio slipped to 11.93% from 12.14% a year earlier. Chief Executive Andrew Irvine said conflict in the Middle East, higher domestic interest rates and recent tax changes were adding pressure for customers. The bank is targeting more than A$450 million in FY26 productivity savings.