NAB stock weighs Q3 growth against weaker home lending

Published on 09/29/2026 at 08:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Citi raised NAB's 12-month price target to AUD 42.10 on September 16, 2026. Q3 cash earnings rose 2 percent, while home loan applications fell 15 percent.

NAB, AU000000NAB4, Illustration mit AI erstellt.

NAB stock was last at AUD 39.11 on the ASX on September 29, 2026 at 4:11 p.m. AEST, while the bank's Q3 FY2026 update showed cash earnings up 2 percent against the 1H26 quarterly average. The stronger earnings trend is being tested by weaker housing demand and a cautious credit backdrop.

Citi raises its price target

According to Motley Fool on September 17, 2026, Citi upgraded NAB to Buy and raised its 12-month price target from AUD 40.00 to AUD 42.10 after the broker's September 16 decision. Based on the ASX price of AUD 39.11 on September 29, 2026, the target lies 7.65 percent above the share price.

The target revision gives the stock a defined valuation reference, but it does not remove the operating pressure visible in NAB's latest update. The next test is the bank's full-year result, scheduled for November 5, 2026, according to NAB.

Home lending is the counterweight

NAB reported on August 17, 2026, that Australian business lending rose 2 percent in Q3 FY2026, including 4 percent growth in Business and Private Banking. Deposit balances also increased 2 percent, while proprietary home-loan drawdowns improved from 47.70 percent in 1H26 to 50.90 percent in Q3 FY2026.

The weaker signal came from applications for Australian home loans, which fell 15 percent from Q2 FY2026. NAB also said its collective provisions to credit risk weighted assets stood at 1.36 percent, including almost AUD 2.0 billion in forward-looking provisions for potential stress.

NAB stock remains below its yearly high

NAB stock was last at AUD 39.11 on the ASX on September 29, 2026, down AUD 0.01, or 0.03 percent, from the prior close. The 52-week range was AUD 35.48 to AUD 49.45, and market capitalization stood at AUD 119.7 billion.

The market picture therefore combines a modest quarterly earnings improvement with a clear housing slowdown and a target price above the latest quote. For investors, the November 5 result will show whether business lending and deposits can offset softer mortgage demand.