ASX Banks in Focus: NAB, WBC & BOQ Spark Investor Interest

With higher interest rates supporting net interest income and margins, Australian banks have benefited from a stronger earnings environment. Take a look at the recent performance of NAB, WBC and BOQ to understand better.

National Australia Bank Limited (ASX: NAB)

On 17 August 2026, published its June quarter results, reporting a strong performance as unaudited statutory net profit increased by 32% compared to the quarterly average of the first half, reaching $1.81 billion. Unaudited cash earnings also increased by 4% on pcp, reflecting improved quarterly performance.

The company’s CET1 capital increased by $1.6 billion during the quarter, reaching a CET1 ratio of 11.93%.The liquidity coverage ratio and net stable funding ratio remained strong during the year at 134% and 115%, respectively, indicating a strong liquidity position.

The company has a market capitalisation of $118.52 billion with a stable dividend yield of 4.47%. The conflicts in the Middle East, higher interest rates, and recent tax changes and federal budgets are posing challenges for the company. Although non-performing loans declined during the quarter, the company expects higher tensions in higher-risk segments, which could impact its performing customers.

Looking ahead, the company remains confident in managing its operations through this difficult period, backed by strong provisions and highly liquid assets. It also targets productivity savings of more than $450 million in FY26, with operating expense growth expected to be lower than the previous year, making it an attractive investment opportunity for investors seeking long-term stable growth.

Westpac Banking Corporation (ASX: WBC)

On 15 September 2026, published a report highlighting its continued focus on data foundations, digital customer engagement and AI capabilities, with its new program helping reduce complexity and improve productivity. The company is also implementing AI to smoothen its operations and further improve productivity.

The company announced its June quarter results in August, reporting a stable performance as unaudited statutory net profit increased by 3% compared to the first-half average, reaching $1.8 billion. Net interest income went up by 2% during the quarter but it was offset by a 3% decline in non-interest income, while net interest margin remained at 1.89%. Financial strength remained strong as it reported CET1 ratio of 12.1%, a liquidity coverage ratio of 134%, and a net stable funding ratio of 11%, all remaining above the regulatory requirements.

The company has a market capitalisation of approximately $117.76 billion with a dividend yield of 4.47%. The company remains focused on expanding its product and services offerings while also strengthening its regional presence across Australia.

Looking forward, UNITE’s progress remains on track, with the company continuing to focus on simplifying its operating environment, enhancing customer experience and improving productivity through its digital platform and the implementation of AI across workflows.

Bank of Queensland Limited (ASX: BOQ)

On 10 August 2026, announced a capital return to shareholders of approximately $2.95 billion which includes a fully franked special dividend of 15 cps and a share buyback program of around $1.96 billion. The initiative is taken to provide an immediate return to shareholders and also supporting ongoing return on equity and earnings per share accretion.

Earlier, the company announced its Basel III Pillar 3 report for the period ending 31 May 2026, reporting a CET1 capital ratio of 11.79%, a liquidity coverage ratio of 138.38% and net stable funding ratio of 125.27%, highlighting the company’s strong capital and liquidity position.

The company has a market capitalisation of approximately $4.32 billion, with an attractive dividend yield of 6.1%, supported by the recent payout announcement. BOQ has also completed the migration of approximately 350,000 customers to the group’s digital banking platform, marking a significant milestone in its transformation towards a simpler and more specialised bank.

The company expects its CET1 ratio to decline to around 10.25-10.75% after the significant capital return. BOQ will remain focused on decommissioning the core ME and Heritage Bank platforms by the end of 2026, which is expected to contribute to its productivity program, positioning it well for future growth.

(Source: Company Announcements)