The National Australia Bank Ltd (ASX: NAB) share price has risen by more than 12% (at the time of writing) in the past month. Experts believe the ASX bank share can continue to deliver positive returns for investors from here.
NAB recently reported its FY26 first quarter update to investors, which showed cash profit of $2.02 billion, up 16% year-over-year. The underlying cash profit increased by 11% year-over-year.
Revenue rose 6% while expenses were broadly flat. It reported a credit impairment charge of $170 million, with the ratio of non-performing loans falling.
Let’s take a look at what experts think of the numbers and the NAB share price.
UBS views on the ASX bank share
The broker described the first quarter result as “strong”, with the growth stronger than what UBS and other market analysts were expecting (of 10.4% growth).
UBS highlighted that while costs were flat compared to the second half of FY25, costs rose 5% year-over-year which was driven by tech and staff inflation.
The broker believes that NAB’s business lending is expected to “benefit from favourable structural trends”, which is a key reason for UBS’ positive view on the ASX bank share.
UBS also said that NAB’s numbers show it is more profitable than its peers, apart from Commonwealth Bank of Australia (ASX: CBA).
The broker thinks investors will be focused on continued cost management, as well as loan growth. UBS noted that cost guidance in FY26 is that its growth will be less than 4.6%.
UBS said that “asset quality looks stable and the credit environment appears mid-cycle, and likely to benefit NAB more than peers”.
Earnings expectations increased
On the back of the better-than expected result in the first quarter of FY26, UBS decided to increase its earnings per share (EPS) forecast for FY26 by 2.8%, for FY27 by 2.1% and for FY28 by 0.7%.
These increases were “largely driven” by improving margins, in terms of the net interest margin (NIM). The NIM measures how much profit a bank makes on its lending in percentage terms, including both the loan rate and the cost to fund the loans (like term deposits and savings accounts).
On top of that, UBS decided to reduce what credit charges it’s expecting for NAB in FY26 and FY27.
UBS rating on the NAB share price
The broker currently has a buy rating on the ASX bank share, with a NAB share price target of $50.50. At the time of writing, that implies a possible rise of 7% over the next year, plus whatever dividends the bank decides to pay.
The post Why experts think the NAB share price is a buy with more upside appeared first on The Motley Fool Australia.
Should you invest $1,000 in National Australia Bank Limited right now?
Before you buy National Australia Bank Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and National Australia Bank Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 Jan 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Are ASX bank stocks back in favour after earnings season?
- Why Lottery Corp, NAB, Netwealth, and TechnologyOne shares are charging higher today
- NAB shares race to record high on strong Q1 update
- National Australia Bank posts strong first quarter FY26 earnings
- 5 things to watch on the ASX 200 on Wednesday
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.