CBA $136.20 and NAB $38.10 Close Higher as APRA Reports Credit Growth 0.7% - 26 Oct 2026

CBA $136.20 and NAB $38.10 Close Higher as APRA Reports Credit Growth 0.7% - 26 Oct 2026

Published: 26 Oct 2026 | Banking • ASX | Educational Only

Commonwealth Bank closed at $136.20 (+1.9%) and NAB at $38.10 (+1.6%) after APRA reported total credit growth of 0.7% month-on-month for September, above the 0.5% consensus per Bloomberg. Housing credit rose 0.5% and business credit rose 0.7%, with business credit annual growth at 6.2%, the highest since 2022 per APRA historical data. CBA reported net interest margin of 2.02% in its latest quarterly trading update, compared to 2.05% in prior quarter per company announcement.

ANZ closed at $30.40 (+1.4%) and Westpac at $27.20 (+1.2%). Banking sector turnover was $2.3 billion or 30% of ASX total turnover. APRA data showed major banks' CET1 ratios averaging 12.5%, well above the 10.5% regulatory minimum per APRA standards. CBA reported CET1 of 12.8% in its latest update, NAB 12.4%, ANZ 12.6%, Westpac 12.3% per respective company reports.

Credit Growth Details - Public APRA Data

Housing credit growth of 0.5% MoM translates to 5.8% annualised, with owner-occupier growing 0.6% and investor growing 0.4% per APRA breakdown. First-home buyer loans were $5.2 billion in September, up 3% month-on-month per ABS lending indicators. Business credit growth of 0.7% MoM was driven by large business loans +0.9% and SME loans +0.5% per APRA.

Arrears data: CBA reported home loan arrears 90+ days at 0.65%, up from 0.55% a year ago per company report, but below long-run average of 0.80% per RBA historical data. NAB reported business loan arrears at 0.45%, stable per company update. These figures are reported by companies and have not been independently verified by us.

Deposit growth was 0.4% MoM per APRA, with term deposits growing 0.8% as savers lock in rates around 4.5% to 5.0% per RBA deposit data. At-call deposits were flat, indicating some shift to term deposits.

NIM and Earnings Context - Company Reports

Net interest margin is reported by banks as net interest income divided by average interest-earning assets. CBA reported NIM of 2.02% in Q3 trading update, down 3 basis points quarter-on-quarter due to mortgage competition and higher wholesale funding costs per company commentary. NAB reported NIM of 1.82% in its latest half-year, ANZ 1.65% post Suncorp Bank acquisition, Westpac 1.92% per respective reports.

Wholesale funding costs: 3-year bank bill swap rate was 4.15%, down from 4.35% a month ago per Bloomberg, which may reduce funding costs if sustained. However, deposit competition remains elevated with some banks offering 5.0% to 5.25% for 12-month term deposits per Mozo data.

Operating expenses: Major banks have reported cost-to-income ratios around 45% to 48% per company reports. CBA reported cost-to-income of 44.5%, NAB 45.2%, ANZ 48.1% including Suncorp integration costs, Westpac 46.8% per latest half-year results.

Educational Context - Banking Metrics

Common banking metrics reported by companies include CET1 ratio (capital adequacy), NIM (profitability of lending), cost-to-income (efficiency), and arrears (credit quality). Past performance of these metrics does not predict future performance. For example, NIM has historically ranged from 1.60% to 2.30% for major banks over past 10 years per APRA data.

Dividend yields have been reported around 3.8% to 5.2% fully franked for major banks based on trailing 12-month dividends per company reports, with franking credits subject to ATO rules and individual circumstances. Past dividends are not indicative of future dividends.

Educational Context - No Advice: Bank share prices near highs have been observed with PE ratios reported around 15x to 19x per public data providers. Credit growth data from APRA is factual historical data. NIM, CET1, and arrears are reported by companies and subject to revision. This information is for learning about how banking metrics are reported and what they mean, not a recommendation to buy, sell or hold bank shares. Consider PDS and seek licensed advice.

Sources: APRA monthly banking stats Sep 2026, CBA/NAB/ANZ/WBC ASX announcements, ABS lending indicators, RBA, Bloomberg. Educational only. Not advice.