SYDNEY, Feb 7, 2026, 16:48 AEDT — Market shut for the day.
- NAB slipped in the last session, dragged down by a wave of selling that hit Australian equities.
- Investors are trying to gauge the impact of higher rates on mortgage pricing—and what that means for borrower stress.
- Bank updates coming up later this month look set to put sentiment to the test in the near term.
Shares of National Australia Bank Ltd (NAB.AX) closed at A$43.36, slipping 1.57%. Australian stocks wrapped up the week on a sour note, putting investors on edge for Monday. 1
The market’s closed for the weekend, leaving traders to wonder if Friday’s risk-off turn was just a brief shakeout—or if something stickier is brewing. In Australia, it’s often the banks at the core of that debate.
NAB has a rate change on its hands. Starting Feb. 13, variable home loan rates are going up by 25 basis points, or a quarter of a percentage point, the bank announced. That follows the Reserve Bank of Australia’s move to push the cash rate up to 3.85%. 2
Australian shares tumbled Friday, the ASX 200 dropping 2% as losses hit every sector, ABC reported, citing LSEG figures. “Panic is spreading,” MooMoo Australia analyst Michael McCarthy told ABC News, noting that the sight of “so many markets falling at the same time is unnerving investors.” 3
Pressure hit the major banks. Commonwealth Bank of Australia (CBA.AX) edged down 0.23%, closing at A$158.91 last session. The rest of the big lenders also lost ground. 4
Elsewhere on the corporate front, NAB plans to introduce video “everyday banking” appointments starting in March, adding to its in-branch options. “We know time is precious,” retail banking executive Paul Carter said in a statement. 5
Traders find themselves circling back to a familiar concern: margins and credit. On one hand, higher rates have the potential to boost banks’ net interest margin—the difference between loan earnings and deposit costs. On the other, those same increases raise pressure on borrowers, pushing up arrears.
That’s the risk scenario here. Mortgage stress picking up speed beyond what banks have penciled in means more provisions, and whatever lift they get from higher pricing starts to disappear. The rest? Volatile market action fills in the gaps.
NAB’s first-quarter trading update lands Feb. 18. Investors will be watching closely for changes in bad-debt figures, how deposit competition is shaping up, and what’s happening with loan growth. 6
