National Australia Bank, which is one of the big four, on Monday posted a 19.3 per cent fall in 2026 first-half statutory net profit to $2.75 billion, on revenue of $11.16 billion.
Its preferred cash net profit, which excludes large items, was flat at $3.59 billion from the same period last year, but 2.3 per cent higher from the end of its 2025 fiscal year.
NAB's result was supported by strong growth of 5.4 per cent in its business and private banking arm and a higher net interest margin, which reflects its earnings on lending activity.
Chief executive Andrew Irvine said global conflict, including in the Middle East, continued to contribute to ongoing economic volatility.
"We're hearing that businesses are challenged by higher fuel costs, supply disruptions, inflation and elevated interest rates, and are becoming more cautious with spending and cash management," he said in a statement on Monday.
"But Australians are resilient.Â
"Many businesses are experienced in managing cost volatility and are making the required adjustments through higher savings and offset balances."
Mr Irvine said NAB was also well-positioned to navigate near-term challenges, on the back of its stronger balance sheet.
In April, ahead of its results, NAB warned that its results would be impacted by $706 million in credit impairment charges, and an increase of around $221 million from the end of its financial year.
The total included a $152 million "economic adjustment" charge to address the changing outlook for Australia's economy, which is expected to weaken this year.
It also allocated $201 million for potential stress that might emerge in energy-related business sectors, likely to be impacted by fuel supply and cost costs related to the conflict.
NAB declared an interim dividend of 85 cents per share, in line with last time.
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