NAB reports $833M credit loss due to rising loan defaults, cuts lending to fossil fuel firms lacking climate plans.

Australia’s National Australia Bank reported an $833 million credit impairment charge in its 2024/25 results, a 14.4% rise from the prior year, driven by increasing business loan defaults, particularly among corporate clients and in New Zealand. Non-performing loans rose to 1.55% from 1.39%, with two large agribusiness customers contributing to the increase. Despite a 0.2% drop in cash earnings and a 2.9% decline in statutory profit, underlying profit rose 1%. CEO Andrew Irvine said performance aligns with expectations amid improving economic conditions. NAB also announced it will no longer lend to 16% of its fossil fuel clients lacking adequate climate transition plans, a move praised by environmental groups. The bank declared a final dividend of 85 cents per share, bringing the annual payout to $1.70. Its shares dipped 3.5% on the day but remain up 9.5% for the year.