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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April 17, 2026 15:29 ET The ongoing conflict in the Middle East continues to raise concerns for policymakers who worry about the impact of the supply shock and high energy prices on the real economy. Producer price data and various survey results on the housing market were the main news from the U.S. this week. In Europe, industrial production data for the euro area gained attention. GDP figures out of China and the policy move by the Singapore central bank were in focus in Asia.