NAB released its September 2026 Pillar 3 report on 5 November 2026 through an ASX announcement. APRA’s APS 330 public disclosure rules require it. The report covers the Level 2 Group as at 30 September 2026.
So what is a Pillar 3 report? It’s a transparency tool for markets. Investors use it to see how a bank measures risk and holds capital. NAB’s edition also covers governance, stress testing and model oversight. Group Chief Financial Officer Inder Singh attested to it on 5 November 2026.
Timing matters here. Capital rules are shifting in Australia and New Zealand, and investors want reassurance. Can NAB’s buffers absorb the changes? This quarter-end snapshot offers a first, partial answer.
NAB Capital Adequacy Ratio: Where the Bank Stands Today
The NAB capital adequacy ratio looks solid. Total capital was $92,995 million, giving a Total capital ratio of 20.26%. That’s down from 20.80% at 30 June 2026. The Tier 1 capital ratio came in at 13.42%.
The NAB CET1 capital ratio was 11.87%, a touch below June’s 11.93%. It still clears the Board’s operating target of greater than 11.25%. After minimum requirements, 7.37% of CET1 remained available. The total CET1 buffer requirement was 5.61%.
NAB’s Total capital ratio was 20.26% at the September 2026 quarter-end. [Investor Daily]
Why the NAB CET1 Capital Ratio Moved
CET1 capital grew by $481 million, or 0.9%, to $54,502 million. Several moving parts explain the result:
- Share issuance: The dividend reinvestment plan added $1.8 billion, including an $850 million partial underwrite.
- Profit: Net profit for the quarter was $1.6 billion.
- Dividends: The interim dividend took $2.6 billion back out.
- Deductions: Regulatory deductions rose, which trimmed the gains.
Total capital moved the other way. It fell by $1.2 billion, or 1.3%. Tier 2 maturities outpaced new issuance, and foreign exchange translation hurt. One Tier 2 instrument also lost partial eligibility as its remaining term shortened.
How Risk-Weighted Assets and Leverage Shifted
Total risk-weighted assets rose by $6.2 billion, or 1.4%, to $459,095 million. The drivers were mixed:
- Interest rate risk in the banking book: RWA climbed by $4.0 billion, or 21.6%, mainly on higher interest rates.
- Credit RWA: Excluding counterparty credit risk, it grew by $1.6 billion, or 0.4%.
- Lending growth: Corporate and project finance exposures added $4.7 billion of RWA.
- Model updates: These trimmed RWA by $2.7 billion, including a released $3.0 billion overlay.
- Mortgage reclassification: Certain residential mortgages were classed as non-standard, lifting RWA by approximately $850 million.
- Leverage ratio: It slipped by 1 basis point to 4.84%, against a 3.50% minimum.
Where Credit Quality and Liquidity Stand
Capital is only half the picture. Asset quality and funding matter just as much:
- Non-performing exposures: They reached $12,812 million, up $572 million, or 4.7%, from March 2026.
- Pressure points: Australian mortgages weakened, and business lending softened to a lesser extent.
- Provisions: The total provision for credit impairment was $6,801 million.
- Liquidity coverage ratio: The quarterly average rose to 135% from 134%.
- Net stable funding ratio: It improved to 116% from 115%.
- Capital floor: Pre-floor RWA sat $3.4 billion above the floor, compared with $507 million in June.
Bigger changes are on the way. From 1 January 2027, NAB will replace 1.5% Additional Tier 1 capital with 0.25% CET1 and 1.25% Tier 2 capital. The leverage ratio minimum then falls from 3.5% to 3.25%. APRA expects revised standardised credit risk weights from 1 April 2027. The next report will show how much that really changes.
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Frequently Asked Questions About the NAB Pillar 3 Report 2026
Q1: What is NAB’s CET1 capital ratio in the latest report?
A1: It was 11.87% as at 30 September 2026, down from 11.93% in June. That’s above the Board’s operating target of greater than 11.25%.
Q2: When was the report released, and what does it cover?
A2: NAB released it on 5 November 2026. It covers the Level 2 Group’s position as at 30 September 2026.
Q3: Why did risk-weighted assets rise?
A3: Total RWA increased by $6.2 billion, or 1.4%. Interest rate risk in the banking book added $4.0 billion due to higher interest rates.
Q4: How liquid is NAB?
A4: The average LCR was 135%, and the NSFR was 116%. Both sit above APRA’s 100% minimum.
Disclaimer:
This article summarises NAB’s September 2026 Pillar 3 report and offers general information only. It isn’t financial, investment or tax advice. Figures may be restated in later NAB disclosures, and past ratios don’t guarantee future results. Please read the full report carefully and speak with a licensed adviser before making any investment decisions about NAB shares, hybrids or other securities.
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
