SYDNEY, July 18, 2026, 09:09 AEST — The Australian stock exchange is shut for the weekend.
National Australia Bank Limited ASX:NAB advanced 0.23% to A$39.85 on Friday, marking it as the sole gainer among the Big Four banks. The S&P/ASX 200 index dropped 0.50% to close at 8,796.70.
The importance of that resilience stems from business banking’s significant share of NAB’s earnings. Business and Private Banking posted A$1.85 billion in cash earnings for the first half, accounting for 51.6% of group cash earnings before large notable items, according to company data.
New data from NAB indicated that demand stayed robust in June. Customer spending increased 1.2% month-on-month and 6.8% year-on-year. Excluding fuel, spending rose 1.4% from May and 7.1% from a year earlier.
Momentum continued to soften during the quarter. Spending growth moderated to 1.5%, down from 1.7% in the March quarter. Chief economist Sally Auld stated, “Consumer spending held up in June.” She added that subsequent data would indicate if this trend continues. NAB
NAB’s June business survey provided a complementary view. Business conditions stayed at +3 for the third month running. Confidence rose nine points to -5. Retail prices dropped for the first time in seven years.
The data does not indicate a surge. Performance was still below average, with capacity utilisation at 82.0%. However, activity absent the earlier price pressure is significant for NAB’s biggest profit segment.
The peer comparison highlights the contrast. NAB was ahead on Friday, while Commonwealth Bank outperformed across the week.
| Bank | July 17 close | Friday | Week | P/E | Dividend yield |
|---|---|---|---|---|---|
| National Australia Bank Limited ASX:NAB | A$39.85 | up 0.23% | up 0.6% | 19.88x | 4.27% |
| Commonwealth Bank of Australia ASX:CBA | A$171.78 | down 0.78% | up 1.7% | 27.80x | 2.88% |
| Westpac Banking Corp ASX:WBC | A$36.56 | down 0.19% | up 0.1% | 18.02x | 4.21% |
| ANZ Group Holdings Ltd ASX:ANZ | A$36.06 | down 0.41% | unchanged | 18.33x | 4.60% |
Weekly changes are based on closing prices from July 10 and July 17. Friday’s prices, P/E ratios, and yields sourced from Google Finance.
NAB sits in the centre of that valuation spectrum, trading at an earnings multiple roughly 10% higher than Westpac’s. Nonetheless, its dividend yield is nearly the same.
Credit expenses continue to offset gains. Impairment charges in the first half rose to A$706 million, marking a 45.6% increase from the September 2025 half. NAB accounted for A$300 million in provisions for possible Middle East risks.
The risk rose further after the close in Sydney. Brent crude gained 4.59% on Friday, reaching $88.10 per barrel. The S&P 500 slipped 1.01%. NAB’s relative strength will be on watch when the ASX opens Monday.
No update from NAB is planned for next week. The lender will release its third-quarter trading update on August 17. Australia’s June jobs data is set for release on Thursday, July 23, at 11:30 AEST.
Risks: An additional spike in oil prices may reignite inflation pressures and prompt renewed expectations of rate hikes. The Reserve Bank of Australia has lifted interest rates three times so far this year, bringing them to 4.35%. A soft jobs report would further undermine the argument for a smooth economic slowdown.
Currently, NAB’s primary earnings driver is experiencing activity with moderated price competition. This provides investors some justification for accepting its premium compared to less expensive rivals. The upcoming employment report on Thursday will be the next indicator.
