Annual results from Big Four bank highlight growing trend towards proprietary lending among majors
National Australia Bank (NAB) now writes half of its new Australian home loans through its own bankers, as the major bank’s push into proprietary lending continues.
Proprietary channel balances rose to 50% in 2026 from 41% in 2025, which NAB said benefited from investment in banker capabilities and tools. That means mortgage brokers originated roughly half of the bank’s new home lending over the 12 months to 30 September 2026, down from close to 60% a year earlier. The figure excludes the digital bank Ubank.
The shift was steady through the year. Drawdowns via proprietary channels lifted from 41% in the second half of FY25 to 46% in the first quarter of FY26. They reached 47.7% in the first half. The third quarter pushed the share to 50.9%.
Chief executive Andrew Irvine named the result as one of three strategic priorities in his annual report message. He said the bank had “strengthened our proprietary home lending drawdowns to 50%”.
NAB is not alone. Westpac lifted its proprietary share of new home loans to 36% in its full-year result this week, although that unified push by the majors contrasts with industry data showing broker market share hitting a new record across the wider market.
NAB is also cutting back its workforce. Irvine said NAB will simplify its operating model in the year ahead, including a workforce reduction, but there will be no material impact to customer-facing banking roles.
Brokers remain central to NAB strategy
NAB has framed its proprietary push as a shift in mix rather than a retreat from brokers. Its half-year investor presentation listed being the partner of choice for target brokers as a goal of its home lending strategy.
Lucia La Bella, executive general manager, specialised distribution at NAB, made a similar case last month. She has spent a decade at the bank, across business lending, commercial real estate, business and private banking, markets and premier banking. In her first MPA interview on what makes a great broker, she said: “For customers who come to NAB through a broker, the broker-customer relationship remains critical.” She expects refinancing to become increasingly important as the market changes, making regular customer check-ins more valuable for brokers.
Adam Brown, NAB’s executive broker distribution, has also tied the channel to the bank’s strategy. In an MPA interview on how NAB backs brokers, he said of NAB’s customer-centric ambition: “The broker channel is really key to that.” He noted that a large share of broker-introduced NAB customers come to the bank for the first time.
How did NAB’s home lending volumes perform?
NAB’s Australian home lending balances grew 3.8% over 2026, a figure covering its Personal Banking, Business and Private Banking and Ubank divisions.
That growth lagged the wider market. System housing credit grew 7% over the year to September 2026, though NAB noted that monthly growth has started to ease in line with broader housing market weakness. On those figures, NAB grew at roughly half the system pace.
Ubank was the standout. Its home lending balances rose 11.6% and it now has more than 1 million customers.
Demand cooled through the year, as it did at Westpac. In NAB’s August trading update, Irvine said the Australian home lending market softened in the third quarter, with NAB’s applications down 15% compared with the second quarter.
Offset and redraw balances also kept growing. At the half-year, NAB said these balances had grown 9% in 12 months, and 80% of customers did not reduce their repayments when the cash rate fell 50 basis points in 2025.
Margins hold as credit costs double
NAB’s margin story differs from Westpac’s. Group net interest margin rose six basis points, supporting a 6.9% lift in underlying profit excluding large notable items.
Mortgage competition still bit. At the half-year, management said Australian home lending contributed two basis points of lending margin compression, with half of that related to competitive pressures.
Credit impairment charges rose to more than $1.5 billion from $833 million. This included $403 million in additional forward-looking provisions reflecting tougher economic conditions. Non-performing exposures edged up to 1.56% of gross loans.
In home lending, Australian 90-plus day arrears were steady at 1.01% at the June quarter.
