Sydney, February 19, 2026, 16:55 (AEDT) — Action shifting to post-market trades.
- National Australia Bank shares climbed again, closing at a fresh record for the second session running
- The rally sprang to life after NAB’s first-quarter trading update landed. Some brokers didn’t wait long to chime in.
- The focus now turns to capital, margins, and when the bank plans to release its May results.
National Australia Bank Ltd stock notched a fresh record during Thursday’s session, peaking at A$48.68 before closing up 2.4% at A$48.28. The move extends a 4.0% rally from the day before, as investors continued to respond to the company’s latest update. (Investing.com)
Investors now face their first real test of appetite for bank risk since February’s reporting rush, a stretch when even small shifts in capital or margins unsettled the mood. NAB put out its update with the shares trading near recent peaks — which didn’t leave much room for error.
Traders are watching to see whether the momentum from this quarter turns into earnings upgrades—or if the bank’s capital buffer ends up getting in the way. Competition among lenders for deposits and home loans is fierce, usually showing up early in funding costs and pricing.
NAB posted a 15% rise in “cash earnings” from the prior half’s average, the bank’s preferred profit measure. Underlying profit moved up 12%. Revenue gained 6%. Costs held steady. Net interest margin edged up 2 basis points to 1.80%, while the CET1 ratio eased to 11.48%. “We have started FY26 strongly,” said chief executive Andrew Irvine. (NAB)
The quarter brought a A$170 million credit impairment charge for the bank, but non-performing exposures edged down to 1.47% of gross loans and acceptances. Management pointed to gains, citing stronger numbers in business lending and the Australian mortgage book. (NAB)
Analysts found cause for optimism. UBS’s Jon Storey pointed to strong initial figures, suggesting they “could trigger an earnings upgrade.” At JPMorgan, Angus Triggs described the capital drop as “no worse than feared,” and highlighted better credit quality. (Capital Brief)
Still, that capital line looms—the stock’s glaring “but.” Should risk-weighted assets keep ticking up, or if mortgage rivalry starts biting into pricing, investors might soon wonder just what returns the bank can really hand over to shareholders—and how long that’ll take.
Another wrinkle: that clean credit story could unravel. NAB flagged that individual charges mainly cropped up in Australian business loans and unsecured retail—two areas with a reputation for turning south quickly when conditions worsen.
Broker updates are in focus as investors look for any momentum cues, trying to figure out if shares can stick to those record levels by Friday. Bank stocks, well known for their habit of snapping back after fast climbs, keep things unpredictable.
NAB will release its half-year results on May 4, as outlined in the bank’s financial calendar. The interim dividend hits its ex-dividend date on May 7, followed by the record date on May 8. (NAB)
