--- title: "National Australia Bank (ASX:NAB) Shares Reflect Stable EPS And Margin Pressure" type: "News" locale: "en" url: "https://longbridge.com/en/news/296222503.md" description: "National Australia Bank (NAB) reported Q3 2026 basic EPS of A$0.588, up 15.4% from the previous quarter, with revenue rising 6.1% to A$5.2 billion. Net interest margin remained stable at 1.79%. While earnings per share improved, net income was flat year-over-year, and domestic home loan applications fell 15%. Investors are monitoring margin pressure, potential credit cost increases, and the impact of digital modernization efforts on future profitability." datetime: "2026-08-18T11:32:32.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296222503.md) - [en](https://longbridge.com/en/news/296222503.md) - [zh-HK](https://longbridge.com/zh-HK/news/296222503.md) generator: "portal-rs" --- # National Australia Bank (ASX:NAB) Shares Reflect Stable EPS And Margin Pressure National Australia Bank stock closed at A$39.20 after the market absorbed its Q3 print, with recent 7 day and 30 day returns both in the red. The headline story is not the share price; it is a solid A$0.59 in basic earnings per share for the quarter and a net interest margin holding around 1.79% in a competitive lending market. For long term investors, the focus now shifts to whether a trailing 12 month P/E near 19.8x and a 4.34% dividend yield can stay supported if margins remain under pressure and credit costs eventually bite. Love National Australia Bank's earnings per share and dividend yield but concerned about margin pressure and credit costs? Check out our screener of list of solid balance sheet and fundamentals stocks (21 results). ## Q3 2026 Earnings Summary - **Revenue (Q3 2026 vs. Q3 2025):** A$5,200 million vs. A$4,900 million (up about 6.1%) - **Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025):** A$1,800 million vs. A$1,800 million (broadly flat) - **Basic EPS (Q3 2026 vs. Q4 2025):** A$0.588 per share vs. A$0.510 per share (up about 15.4%) - **Net Interest Margin (Q3 2026 vs. Q1 2026):** 1.79% vs. 1.80% (slightly lower but broadly stable) Prefer clear visual charts instead of scrolling through dense earnings tables and margin figures for National Australia Bank? See the full financial picture with an at a glance view of its valuation in our company report for National Australia Bank. ASX:NAB Trailing 12-Month Earnings & Revenue History as at Aug 2026 ## NAB’s Bullish Story Rests On Execution Milestones The upbeat view on National Australia Bank hinges on digital modernization, AI adoption and a better deposit mix lifting earnings quality. Q3 earnings of A$1,800 million, flat on the prior year, and basic EPS of A$0.588, higher than the prior quarter, show that earnings per share are moving in the right direction even while reported net income is stable. That supports the idea of early operating leverage, though not yet a step change. Net interest margin at 1.79% is described as broadly stable in a competitive market. That aligns with the claim that deeper business deposits and funding mix work can support margins through tougher conditions. The leadership reshuffle that creates a dedicated Group Executive Technology & AI, along with active agentic AI pilots and new data analytics tools, is a clear milestone for the narrative that NAB is embedding AI into day to day operations. Reveal where the surface looks calm, but the street models may be quietly drifting apart on National Australia Bank’s next few years. Access the full revenue, earnings and dividend consensus path with the analyst estimates for National Australia Bank. ## Bear Case on NAB Margins and Credit Still Unresolved The bearish narrative argues that National Australia Bank faces a squeeze from margin pressure, rising compliance and climate costs, and a more fragile housing cycle that could lift credit losses and strain dividends. This quarter does not decisively settle that concern. Net interest margin at 1.79% is described as broadly stable in what management still calls a competitive market, so it does not yet show relief from pricing pressure. Net income excluding extra items at A$1,800 million is flat year on year, while domestic home loan applications have fallen 15% quarter on quarter. This aligns with concerns about softer housing demand and limits on growth. At the same time, credit stress has not yet broken through the income statement. Earlier capital strengthening and higher collective provisions highlight that NAB is preparing for a tougher cycle rather than proving the bearish view incorrect. After a flat net income result and with a 4.34% dividend alongside a 54% bad loan allowance, it is fair to ask whether these are isolated pressure points or early signs of a deeper risk profile. Review the independent warning signs already flagged and scan for any hidden vulnerabilities in National Australia Bank with the risk analysis for National Australia Bank which shows 2 important warning signs. ## Stay Ahead With Simply Wall St If the mix of a 4.34% dividend yield, a P/E near 19.8x and steady A$0.588 quarterly EPS has put National Australia Bank on your radar, register for free with Simply Wall St and add it to your Watchlist to track price against fair value and wait for a setup that fits your plan. After you own the stock, use the Portfolio Command Center to cut through noise and focus on the key fundamental and risk updates that matter for your holdings. For a broader view, tap into the Community to see how other investors are thinking about banks with similar margin and credit questions. By surfacing potential catalysts and risks early, Simply Wall St helps you act with more confidence and stay a step ahead of the market. ## Seeking Alternatives Beyond National Australia Bank? Fresh stock ideas can move fast. Catch potential breakouts and momentum shifts while they are still under the radar for now and before the crowd reacts. Act now. - Spot companies with consistent cash strength and disciplined balance sheets, then compare them against National Australia Bank using the curated list of solid balance sheet and fundamentals stocks (21 results) for potential fresh opportunities. - Ride structural growth themes early and scan for under the radar companies with strong fundamentals using the hand picked 11 high quality undiscovered gems before attention and prices start flying. - Target resilient dividend payers that aim to keep income flowing by reviewing the curated 4 dividend fortresses while yields still look appealing and before momentum pulls valuations away. *This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.* ### Valuation is complex, but we're here to simplify it. Discover if National Australia Bank might be undervalued or overvalued with our detailed analysis, featuring **fair value estimates, potential risks, dividends, insider trades, and its financial condition.** Access Free Analysis ### Related Stocks - [NAB.AU](https://longbridge.com/en/quote/NAB.AU.md) - [NABZY.US](https://longbridge.com/en/quote/NABZY.US.md) ## Related News & Research - [UBS Keeps Their Buy Rating on National Australia Bank Limited (NAUBF)](https://longbridge.com/en/news/297584282.md) - [National Australia Bank (ASX:NAB) Could Be 8% Undervalued On Third Quarter Results](https://longbridge.com/en/news/297419069.md) - [Macquarie Keeps Their Hold Rating on Region Group (SCPAF)](https://longbridge.com/en/news/298185411.md) - [Simon Henry Spends AU$97k On DGL Group Stock](https://longbridge.com/en/news/298361741.md) - [Is Sandfire Resources (ASX:SFR) Above Fair Value After Strong Results And Its Dividend Affirmation?](https://longbridge.com/en/news/297860811.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**