SYDNEY, March 6, 2026, 17:11 AEDT
Fitch held National Australia Bank’s rating steady at AA- this Thursday. That’s significant for lenders: those ratings directly affect both the cost and accessibility of funding.
Back in February, NAB flagged in a debt update that as of Jan. 31, its outstanding term wholesale funding broke down as 60% senior debt, 17% subordinated, and 22% covered bonds — that’s debt secured by a pool of assets. The bank had tapped 45% of its covered-bond capacity. All of this keeps the ratings call in sharp focus for investors.
Timing is also a factor here. NAB is scheduled to release its half-year results on May 4. Fitch, for its part, projects the bank’s stage 3 loan ratio will edge down in FY26. These stage 3 loans—credit-impaired exposures—are a key area for monitoring stress in the portfolio.
NAB’s February quarter update helped settle nerves. For the three months ending Dec. 31, the bank posted cash earnings—its go-to profit metric—of A$2.02 billion, while net interest margin ticked up to 1.80%. Shares surged, climbing as much as 5.8% to a record high of A$47.96.
Asset quality came in stronger. NAB reported that non-performing exposures—essentially, loans under stress—dropped by 8 basis points from September, landing at 1.47% of gross loans and acceptances by the end of December. Credit impairment charge totaled A$170 million.
The results fall in line with a wider trend for the sector. In February, Commonwealth Bank delivered record first-half cash earnings. Westpac and ANZ also topped first-quarter profit forecasts—Westpac saw gains from loan and deposit growth, while ANZ’s numbers benefited from cost reductions.
Still, that could shift. All four big Australian banks, NAB among them, pushed through the Reserve Bank of Australia’s February cash rate hike—now at 3.85%—to their borrowers, and households are still feeling the impact. But another risk crept in this week. Skye Masters, NAB’s head of markets research, flagged “you see that repricing in OIS curves” and in the bond market. Overnight index swaps—OIS—remain a key tool for traders mapping out likely policy moves. Reuters
On March 3 in Singapore, Chief Executive Andrew Irvine called Australia “a very attractive destination for global capital,” highlighting the strength of its deep and well-regulated markets. For NAB, it’s now a matter of waiting to find out if that optimism translates to the upcoming results. news.nab.com.au
