National Australia Bank shares fell 7.5% to A$38.08, their lowest level since October 12, after the lender reported weaker full-year earnings for the year ended September 30. Cash earnings fell 13.4% to A$6.14 billion, missing the Visible Alpha consensus of about A$6.33 billion, while statutory net profit attributable declined 9.1% to A$6.14 billion, below analysts’ A$6.45 billion estimate. Net operating income rose 5.8% to A$22.01 billion as lending volumes and margins improved, but credit impairment charges jumped 85.7% to A$1.55 billion. Large notable items of A$1.35 billion, mainly tied to a change in software capitalisation policy, weighed on reported cash earnings; excluding them, cash earnings were broadly flat at A$7.09 billion, below the adjusted analyst estimate of A$7.24 billion. Business and Private Banking remained strong, while Corporate and Institutional Banking and New Zealand Banking earnings declined. NAB expects underlying cost growth of less than 3% in FY27, plans to keep investment spending near FY26’s A$1.8 billion, and expects about A$300 million in restructuring costs in 2027 after announcing plans to cut up to 2,500 roles by September 2027. CEO Andrew Irvine cited persistent inflation, higher interest rates and weaker housing conditions. The bank declared a fully franked final dividend of 85 Australian cents per share, taking its FY26 total to A$1.70, unchanged from the previous financial year.