NAB’s earnings lose interest

Market overview

The ASX 200 rose 0.3% to 8,828, snapping a week-long losing streak as investors piled back into gold and mining stocks. A rebound in bullion prices helped lift sentiment after several sessions of red while Wall Street’s tech recovery added some spark to local markets.

Gold miners led the charge, with Newmont and Northern Star both jumping as gold traded near US$3,980 an ounce. Major miners also gained despite weaker iron ore prices.

Elsewhere, Light & Wonder jumped on strong quarterly results, Domino’s rose after locking in $1.05 billion in new debt facilities and Amcor gained after beating earnings expectations. The biggest losers were DroneShield, down amid a global defence tech sell-off, and James Hardie which dived after being dropped from the MSCI Australia Index.

After six down sessions, the ASX finally found its footing with investors once again taking comfort in gold.

NAB’s profit slips

The result: NAB fell 2.7% after the bank posted cash earnings of $7.1 billion, just shy of analyst forecasts. Net profit was down 2.9% to $6.76 billion, hit by higher costs and credit impairment charges.

CEO Andrew Irvine said there’s still “good momentum,” highlighting a 9% lift in business lending and 1.6% earnings growth in NAB’s business and private banking arm. But the gains were offset by rising expenses including a $130 million payroll remediation charge.

Why it matters: NAB’s result shows how hard it’s become for the big banks to grow profits as competition heats up and costs stay high. The business bank remains NAB’s bright spot but margins are under pressure and investors are watching for signs of cost control and efficiency gains in 2026.

What’s next: Irvine said NAB will keep investing in technology and frontline services to protect its market share. But the outlook remains steady rather than spectacular as tighter credit conditions bite.

Breville’s brewing confidence

The result: Breville climbed after an upbeat AGM. CEO Jim Clayton told investors new products are performing well and the company’s expansion into China and the Middle East is off to a strong start.

Breville also confirmed that its manufacturing shift away from China is on track with 80% of U.S. product gross profit expected to come from outside China by early next year. This was a key move to reduce tariff and supply risks.

Why it matters: After a tough start to the year, Breville is showing signs of steady recovery. Analysts said the manufacturing transition “appears on track” and praised the company’s growing presence in new international markets.

What’s next: Breville plans to launch more products through FY26 and keep building its manufacturing base outside China. Investors will be watching to see if these moves help lift margins and sustain growth.