National Australia Bank (NAUBF,NABZY,NAB.AX) expects credit impairment charges of A$706 million for the first-half of 2026, following adjustments to credit provisioning and capital settings in response to risks stemming from the conflict in the Middle East.
Of this total, A$300 million relates to movements in forward-looking collective provisions. These include a A$152 million increase in the Economic Adjustment due to updates in the Base economic forecast and a higher weighting (45%) to the Australian Downside scenario, a A$201 million increase in Forward Looking Adjustments (FLAs) for sectors potentially impacted by fuel supply and cost issues, and a A$53 million release of FLAs where risks have not materialized or are now captured in underlying provisioning.
Underlying provision charges are expected to be A$406 million, comprising A$541 million in Individual Assessed provision charges, partially offset by a A$135 million write-back in underlying Collective provisions.
NAB also reaffirmed its guidance for fiscal year 2026 cash operating expense growth to remain below 4.6%. This guidance excludes Large Notable Items but incorporates the impact of changes in software capitalization policy on the second-half of 2026 operating expenses.
NAB.AX was trading at A$41.22 down A$1.33 or 3.13%.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.