Category: Stock Market

Capstone Copper Corp (ASX: CSC) shares are having a poor session on Wednesday.

At the time of writing, the ASX 200 copper stock is down 19% to $12.72.

Why is this ASX 200 copper stock crashing?

The heavy selling this morning follows the release of the copper miner’s 2026 production and cost guidance, which appears to have disappointed investors.

Capstone Copper announced that it expects consolidated copper production of between 200,000 and 230,000 tonnes in 2026. While this is broadly in line with 2025 levels, it signals largely flat output rather than the stronger growth some investors may have been hoping for.

More concerning for the market is cost guidance. The ASX 200 copper stock expects consolidated C1 cash costs of US$2.45 to US$2.75 per payable pound of copper in 2026. Management said costs are expected to increase compared to 2025, primarily due to modest inflation and lower-grade ore at Mantos Blancos and Pinto Valley driven by mine sequencing.

Lower grades generally mean more material needs to be processed to produce the same amount of copper, which can weigh on margins.

Big capital spend

Another factor that may be unsettling investors is the scale of planned capital expenditure.

Capstone Copper is forecasting total capital expenditure of US$495 million in 2026. This includes US$270 million in sustaining capital and US$225 million in expansionary capital, largely related to the Mantoverde Optimized Project and the Santo Domingo Project.

On top of this, the company expects to spend a further US$225 million on capitalised stripping at its open-pit operations and US$70 million on exploration activities.

While these investments are aimed at driving future growth, they represent significant cash outflows in the near term.

Production outlook

At Mantoverde, production is expected to remain broadly stable in 2026, though throughput improvements are set to be offset by the impact of a January strike and planned maintenance. The ramp-up of the Mantoverde Optimized project is expected in the fourth quarter of 2026, with higher production levels targeted in 2027.

Over at Mantos Blancos, it is forecast to see lower production in 2026 due to a one-year period of lower copper grades, though grades are expected to recover in 2027.

Finally, Pinto Valley production is expected to increase slightly, but grades will be marginally lower. Cozamin is forecast to see slightly lower production due to lower grades and higher labour costs.

Commenting on the update, the ASX 200 copper stock’s CEO, Cashel Meagher, said:

2025 was a remarkable year for Capstone, delivering record copper production up 22% year-over-year, while executing on several key catalysts. We will continue to build on this success in 2026, with a focus on delivering consistent and reliable outcomes, while we execute on MV-O which is expected to drive higher copper production levels in 2027. Meanwhile, we will progress the fully-permitted Santo Domingo Project towards a sanctioning decision, which is expected in the second half of 2026.

Building on the first phase of the exploration program commenced in late 2024, we will continue to advance our district growth strategy through targeted exploration focused on the Mantoverde-Santo Domingo district. In parallel, we will continue to capitalize on strong commodity prices by deleveraging through internally generated cash flows, ensuring we are well-positioned to advance our growth strategy.

The post Why is this ASX 200 copper stock crashing 19%? appeared first on The Motley Fool Australia.

More reading

• Copper price forecast for 2026: Goldman Sachs
• Capstone Copper shares in a slump despite good news out of Chile
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 stocks smashing the benchmark this week
• ASX copper shares surge as commodity hits record high

Motley Fool contributor James Mickleboro 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.

Critical minerals shares were in focus for much of the latter part of last year, as the US sought to put in place strategies to bolster home-grown supply and diversify away from China, which has a strong hold on much of the supply chain for these minerals.

According to the analysts at Macquarie, this interest has jumped again early this calendar year, with the US launching the US$12 billion Vault Project, which is in addition to the US National Defense Stockpile (NDS).

Stockpiles will drive demand

Just how the Vault Project will work and even which minerals will be stockpiled are unclear at this stage, but it is undoubtedly a positive for critical minerals companies, Macquarie said in a recent research note sent to clients.

Macquarie said the project was “aggressive”, and while details were thin on the ground, it would undoubtedly be a positive for critical minerals suppliers.

They added:

Currently, there is no clear guidance on either the scale or composition of minerals to be stockpiled under the Vault Project. However, if we assume an NdPr (neodymium-praseodymium)stockpile cap similar to the US$2bn NDS and adjust for the larger funding envelope, the implied NdPr oxide inventory for the Vault Project would be about 2.6kt, or about 2% of projected global demand in CY26. We note that the internal budget may ultimately target a significantly larger volume, given NdPr’s widespread use across civilian and industrial applications.

Macquarie said the critical minerals strategy would be built on four pillars: direct investment; strategic stockpiling; market protection; and rebuilding the mining ecosystem.

Two ASX-listed companies which could stand to benefit, the Macquarie team said, were Lynas Rare Earths Ltd (ASX: LYC) and Iluka Resources Ltd (ASX: ILU).

In the case of Iluka, Macquarie has a price target of $6.50 on the company’s shares, compared with $5.35 currently.

Iluka reported its first-half results on Wednesday, saying mineral sands revenue had fallen from $1.13 billion to $976 million over the full year.

The company also dropped its full-year dividend from 4 cents to 3 cents, on a $288 million net loss, down from a $231 million full-year profit. The loss included $565 million in impairment charges announced to the market in January.

The company, in its statement to the ASX, mirrored Macquarie’s sentiment that it was well-placed to take advantage of demand as the rare earths market developed.

The company said:

Rare earths dominated headlines globally in 2025 and were recognised as a clear priority by investors, consumers and policymakers alike. We saw the risk of supply disruptions shift from the theoretical to the concrete, reinforcing the value and strategic importance of the new business Iluka has been building since 2022, with the Eneabba refinery to be commissioned next year.

Iluka said an example of the market evolving was the US government introducing a price floor for light magnet rare earths.

It went on to say:

The acceleration of these developments underscores the advantage of Eneabba coming online in 2027; the products it will deliver (light and heavy rare earths oxides); how those products will be priced; and the wide range of feedstocks the facility has access to and will be capable of processing.

Meanwhile, Macquarie’s price target on Lynas was $17.50 per share compared with $15.44 currently. Lynas will report its results on February 26.

The post Two critical minerals companies to consider, according to Macquarie appeared first on The Motley Fool Australia.

More reading

• Iluka Resources posts lower FY25 profit but advances rare earths strategy
• Buy, hold, sell: CSL, Lynas, and Wesfarmers shares
• 3 ASX mining shares to sell: experts
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation funds have delivered positive returns for the first month of the calendar year, Chant West says, despite volatility in the markets.

Chant West, head of superannuation investment research, Mano Mohankumar, said funds were coming off a strong return for calendar year 2025 of 9.2%, and edged up another 0.4% for January.

This brought the return for the first seven months of the financial year to 5.4%.

Mr Mohankumar added:

During the month, we saw heightened geopolitical risks including US military action in Venezuela and renewed tariff threats against Europe in relation to Greenland, which were subsequently withdrawn. However, markets focused on the global economic backdrop that still remains positive and expectations of continued earnings growth. Over the full month of January, international developed shares were up 1.7% in hedged terms, but the sharp appreciation of the Australian dollar relative to the US dollar turned that healthy gain into a loss of 2.7% in unhedged terms. On average, super funds have about 70% of their international shares exposure unhedged. Emerging markets shares outperformed developed markets, returning 3.6% in unhedged terms. Back at home, Australian shares advanced 1.7%, while over the same period both Australian and international bonds gained 0.2%

Mr Mohankumar said that over a longer time horizon, it was clear that Australia’s superannuation funds had been performing well.

He added:

Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.8% p.a., which is still well ahead of the typical objective.

Diving deeper into the results, over the past year, an aggressive “all growth” allocation has outperformed, returning 8.7% compared with 6.3% for the balanced option.

Over the financial year to date, all growth has also outperformed, coming in with a 7.2% return.

So how much super do you need?

The Association of Superannuation Funds of Australia (ASFA) has done the numbers and says that, for a comfortable lifestyle, singles will need a super balance of $54,240 a year, or $76,505 for a couple.

This translates to a super balance of $690,000 for couples and $595,000 for singles based on a retirement age of 67.

The post Despite choppy markets, super funds get the year off to a positive start appeared first on The Motley Fool Australia.

More reading

• JB Hi-Fi shares jump 15% this week. What’s next?
• Why is this ASX 200 copper stock crashing 19%?
• Two critical minerals companies to consider, according to Macquarie
• What’s next for the BHP share price?
• Warning: This superannuation myth could derail your retirement

Motley Fool contributor Cameron England 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.

The BHP Group Ltd (ASX: BHP) share price is in the red on Wednesday morning. At the time of writing, the shares are down 1.25% to $52.08 a piece.

Despite today’s decline, the mining giant’s shares are still 13.68% higher for the year to date and 26.97% above where they were last year.

What happened to BHP shares this week?

It’s been a big week for the company and its share price is still settling following news of its impressive half-year result, its latest dividend announcement and new silver agreement.

On Tuesday, the group announced that it has entered into a long-term streaming agreement with Wheaton Precious Metals Corp. (NYSE: WPM). Under the agreement, BHP will receive an upfront payment of US$4.3 billion at completion in exchange for delivering silver.

The news was quickly followed by the miner’s latest financial results announcement. BHP posted a 11% revenue increase and 28% profit hike for the half-year ended 31st December 2025. At the same time, BHP announced a 46% increase in its interim dividend, to US 73 cents fully franked. 

Investors were pleasantly surprised with the announcements and rushed to secure a stake in the company. And the combination of tailwinds sent the share price flying to an all-time record of $53.95 a piece.

Although the shares have now dropped 3.69% from that all-time high to the current trading price, they’re still 0.56% higher than when the ASX opened on Monday morning this week.

The question now is, will the BHP share price climb higher again or correct back to what it was before this week began?

What’s next for the BHP share price?

TradingView data shows that the majority of analysts still have a ‘hold’ rating on BHP shares. Out of 20 analysts, 11 rate the mining giant’s stock as a hold and six have a buy or strong buy rating. Another three have a sell or strong sell rating on BHP shares.

The average target price is currently $51.75 a piece, which implies a 0.14% downside at the time of writing. Although, some analysts are bullish that the shares could climb to $59.79 a piece this year. That implies a 15.28% upside from the current share price.

Some analysts have confirmed their neutral stances on the stock following the ASX giant’s announcements yesterday. The consensus that while earnings were solid, they were not a shock. 

More analysts are expected to confirm or amend their position on the mining giant’s shares in coming days. 

The post What’s next for the BHP share price? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• BHP share price breaks records on US$4.3b silver agreement
• Here’s everything you need to know about the latest BHP dividend
• Why BHP, JB Hi-Fi, Judo Capital, and PEXA shares are storming higher today
• ASX recap: 5 most traded shares last week

Motley Fool contributor Samantha Menzies 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Your superannuation is your nest egg for retirement. And even the smallest mistake can cost you a fortune down the road. 

The problem is that there are so many myths out there about how to manage your superannuation and what to expect from it. Some of these are helpful, and some definitely aren’t. In fact, some of these so-called myths can derail your retirement entirely.

Here’s one common superannuation myth that could mean the difference between a comfortable and adequate retirement. 

The superannuation myth that could ruin your retirement

“My employer’s super contributions are enough.”

Many Australians assume that compulsory employer superannuation contributions are enough to support a comfortable retirement. They think that because their superannuation is invested in a diversified portfolio, which is often benchmarked to broad market indices like the S&P/ASX 200 Index (ASX: XJO), it’ll look after itself.

But the reality is, while these funds will help you, they won’t provide the type of lifestyle that many individuals and couples expect when the time comes.

That’s because employer contributions are based on your current salary, not on your future needs. They also don’t take career breaks or part-time work into consideration. 

It’s also worth remembering that because of inflation, today’s balance might not stretch as far in 40 years’ time. 

According to ASFA, a comfortable retirement is expected to cost approximately $54,240 per year for individuals and $76,505 per year for couples. In order to get that, a couple would need a superannuation balance of approximately $690,000. A single person would need approximately $595,000.

In order to accumulate that type of superannuation balance through the mandatory superannuation guarantee (which is currently 12%) alone, you’d need a high salary of around $100,000 per year consistently from the age of 30 until retirement, combined with compounded investment returns.

The harsh reality

The fact is that anyone earning less than what is considered a “high-level income” will have to add more funds themselves in order to come close to that goal. 

While there is no sense adding money to your superannuation fund if it means you’ll struggle to make it to payday, it’s important to contribute extra wherever you can. 

If you have spare cash at the end of the month, it pays in the long run to contribute it to your superfund. 

After all, the power of compounding returns means that the more money you can invest when you’re younger, the more impact it will have on your final balance.

The post Warning: This superannuation myth could derail your retirement appeared first on The Motley Fool Australia.

More reading

• What’s next for the BHP share price?
• Netwealth shares surge 12% as record inflows power earnings growth
• Why are Telix shares trading higher today?
• Why Medibank shares are jumping 7% today
• Magellan shares surge 5% as dividend boost offsets earnings pressure

Motley Fool contributor Samantha Menzies 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.

Netwealth Group Ltd (ASX: NWL) shares have jumped 12% as at the time of writing on Wednesday after the wealth platform provider delivered a standout half-year result, highlighted by record inflows and strong double-digit revenue growth.

Prior to the announcement, Netwealth shares had underperformed the broader S&P/ASX 200 Index (ASX: XJO) and were down almost 30% over the past 12 months.

Today’s result and the share price reaction are therefore a welcome boost for investors who were eager to see evidence that Netwealth’s growth momentum remains firmly intact.

Revenue and earnings power ahead

Netwealth reported total income of $193.8 million for the half, up 24.7% on the prior corresponding period. EBITDA rose 23.9% to $96.7 million, with margins holding near 50%, underscoring the operating leverage in the platform model.

Net profit after tax increased 19.9% to $69 million, while earnings per share climbed 20.5% to 28.1 cents. The company also declared a fully-franked interim dividend of 21 cents per share, up 20%.

While operating expenses rose 25.5% to $97.1 million due to continued investment in people, technology, and governance, margins remained resilient. That balance between growth and reinvestment appears to have reassured the market.

Record inflows drive platform growth

The real highlight however was flows.

Netwealth delivered record half-year custodial inflows of $16.4 billion, up 10.7%. Funds under administration (FUA) surged 23.6% to $125.6 billion, reflecting both strong net flows and positive market movements.

Managed account net flows rose 42.7% to $3.4 billion, while total funds under management climbed 30.6% to $31.4 billion. Client accounts increased 13.7% to 172,221, and the number of advisers using the platform rose 7.3% to 4,089.

These metrics point to continued structural gains in market share, particularly as advisers shift toward technology-led, scalable platforms.

Foolish bottom line

Netwealth has consistently positioned itself as a beneficiary of multiple long-term industry shifts, including the consolidation of legacy platforms and the rising demand for user-friendly and integrated wealth technology.

With strong revenue growth and margins holding near 50%, investors are seeing the strength of this business and its sustained inflow momentum.

Growth remains strong, flows are setting records, and for now, Netwealth’s competitive position appears to be strengthening.

The post Netwealth shares surge 12% as record inflows power earnings growth appeared first on The Motley Fool Australia.

More reading

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• Brokers name 3 ASX shares to buy today
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Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Telix Pharmaceuticals Ltd (ASX: TLX) were trading higher on Wednesday after the company said it had filed a key regulatory approval in Europe.

Telix, in a statement to the ASX, said it had submitted a marketing authorisation application (MAA) in Europe for its brain cancer imaging candidate, TLX101-Px.

Dual regulatory process on foot

The company said it had been preparing the regulatory packages for Europe and the US concurrently and was “bringing forward the European submission to meet an agreed filing date while aligning with aspects of the U.S. Food and Drug Administration (FDA) package to support the additional application”.

The new submission covers the major European markets, Telix said.

The company added:

In Europe, positron emission tomography (PET) imaging of glioma with 18F-FET (FET-PET) is currently performed under physician-supervised use through hospital-based production at a limited number of sites. However, there is currently no generally available commercial product in Europe that ensures consistent quality and access for glioma imaging, an acute and immediate need. Telix aims to expand patient access to advanced imaging that can distinguish progressive or recurrent glioma from treatment-related changes in both adults and children, with potential for additional future indications.

Telix said the drug was also being developed as a patient selection and response assessment tool for its glioblastoma therapy candidate, “which has been granted orphan drug designation in Europe and the U.S. and is the subject of the Phase 3 IPAX-BrIGHT trial in patients with recurrent glioblastoma, launching in multiple European countries”.

Telix Precision Medicine Chief Executive Officer Kevin Richardson said:

We see a compelling opportunity in Europe to broaden access to authorized targeted radiopharmaceuticals for brain cancer imaging and therapy, and as such this submission is an important milestone for Telix. The strategic value of this submission is particularly relevant to establishing widespread glioma imaging as part of our corresponding therapeutic development program. We have been able to utilize aspects of our FDA package to expedite the European filing, which has been submitted in accordance with a pre-defined date agreed with the regulator, with the U.S. resubmission to follow.

Telix shares were trading 2.8% higher on the news on Wednesday morning. The company’s shares are not far off their 12-month lows of $8.26 and well below the highs of $31.97 achieved about a year ago.

Some brokers believe the stock is undervalued, with Citi reiterating its buy rating on the stock with a price target of $34.

Telix was valued at $2.99 billion at the close of trade on Tuesday.

The post Why are Telix shares trading higher today? appeared first on The Motley Fool Australia.

More reading

• These 2 ASX healthcare shares could jump well over 80%
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• Telix Pharmaceuticals files European application for brain cancer imaging
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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Cameron England has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Medibank Private Ltd (ASX: MPL) share price is rocketing on Wednesday after the health insurer released an update to the market.

At the time of writing, the Medibank share price is up 7.08% to $4.84. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up modestly 0.5%.

Let’s take a closer look at what the company announced.

Premium changes locked in for 2026

According to the release, Medibank confirmed that its health insurance premiums will rise by an average of 5.10% from 1 April 2026, following approval from the Federal Health Minister.

The change applies across both Medibank and ahm branded policies. This equates to an average increase of $2.14 per week, or $4.46 per week for a family policy.

Management said the increase reflects rising costs across the healthcare system. These include higher hospital charges, increased claims activity, and broader inflationary pressures.

Medibank also highlighted its efforts to manage costs. The company said it has removed around $125 million from operating expenses over the past eight and a half years, which it believes has helped limit premium increases.

It added that the group continues to focus on efficiency while investing in digital services and preventative health programs to improve long-term member outcomes.

Customer support measures were also outlined, including hardship support options and no gap arrangements for certain services.

A snapshot of Medibank’s operations

Medibank is one of Australia’s largest private health insurers, operating under the Medibank and ahm brands. The group provides hospital and extras cover to millions of members, along with a range of health services through its Amplar Health division.

The company has around 2.75 billion shares on issue and a market capitalisation of roughly $12.4 billion.

Over the past 12 months, Medibank shares have traded between $3.93 and $5.31. At around $4.84, the stock remains below its 12-month high but well above its yearly low.

Medibank also returns capital to shareholders through dividends. Based on the current share price, the stock offers a dividend yield of approximately 4%.

What comes next for Medibank

Premium adjustments are important in supporting margins as healthcare costs continue to rise across the system.

The key issue for the market will be whether higher pricing is sufficient to offset claims growth and utilisation trends in the months ahead.

Medibank is due to report its half-year results tomorrow morning. That update should provide clearer details on underwriting margins, claims experience, and capital management settings for the remainder of the year.

The post Why Medibank shares are jumping 7% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 financials flew but tech and mining shares faltered last week
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Motley Fool contributor Aaron Teboneras 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.

Shares in Magellan Financial Group Ltd (ASX: MFG) surged as much as 8% early on Wednesday before retreating to a 5% gain (at the time of writing) after the fund manager delivered a steady interim result and announced a sharply higher dividend.

While statutory profit declined, investors focused on stability in the core business and robust capital management. In a sector still battling fee compression and mixed flows, in addition to Magellan’s company-specific issues, the result was enough to shift sentiment.

50% dividend boost

The standout feature of the result was the dividend.

Magellan declared a fully-franked interim dividend of 39.5 cents per share, up 50% on the prior corresponding period. The payout aligns with the group’s revised policy to distribute at least 80% of operating profit and signals confidence in underlying cash generation.

For income-focused investors, the increase reinforces the company’s commitment to returning capital even as parts of the operating environment remain challenging.

Operating profit after tax held flat at $83.1 million for the half year, while operating earnings per share rose 5% to 48.6 cents, helped by ongoing share buybacks.

Statutory NPAT, however, fell 27% to $68.9 million. The decline was largely due to a $20.5 million negative fair value movement on financial assets, i.e., essentially accounting adjustments for paper losses from changes in the market value of investments Magellan holds.

Encouragingly, strategic partnership income more than doubled to $25.7 million, driven by stronger contributions from Barrenjoey and Vinva. This growing earnings diversification appears to be gaining investor recognition.

Assets under management rose 3% to $39.9 billion, with institutional inflows offsetting continued retail global equity outflows.

Foolish bottom line

Magellan ended the half with $504 million in liquid capital and no debt. The company also returned $38.4 million to shareholders through on-market buybacks during the period.

After a 13% share price decline over the past year, Wednesday’s sharp rally suggests the market may be reassessing whether the worst is priced in. For now, steady profits and a stronger dividend were enough to improve sentiment.

The post Magellan shares surge 5% as dividend boost offsets earnings pressure appeared first on The Motley Fool Australia.

More reading

• Magellan Financial Group grows dividend as steady 1H26 results land
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Motley Fool contributor Kevin Gandiya has no positions 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.

National Australia Bank Ltd (ASX: NAB) shares are charging higher on Wednesday.

In morning trade, the banking giant’s shares are up 6% to a record high of $47.96.

NAB shares climb on update

Investors have been buying the big four bank’s shares after it delivered a strong first-quarter trading update.

According to the release, for the December 2025 quarter, NAB reported cash earnings of $2.02 billion. This is up 15% compared to the average quarterly result in the second half of FY 2025.

The bank’s statutory net profit came in at $2.21 billion and its underlying profit rose 12%, supported by a 6% lift in net operating income and lower credit impairment charges.

Net interest income increased 3% over the prior half average, while total net operating income rose 6%. Excluding Markets & Treasury income, revenue grew 4%, reflecting volume growth, higher fees and commissions, and lower customer remediation costs.

Another positive was that NAB’s net interest margin edged up 2 basis points to 1.80% for the quarter. Excluding Markets & Treasury and liquid assets, margins were broadly stable, with improved deposit outcomes offsetting ongoing lending competition.

In addition, it revealed that its expenses were broadly flat over the quarter, as higher technology and personnel costs were balanced by productivity benefits and lower remediation and restructuring expenses.

Lending and deposits growth

NAB’s business lending continued to be a standout performer. Australian business lending rose 2% in the quarter, including 3% growth in Business & Private Banking.

Housing lending also strengthened, growing 1.1 times system (excluding Advantedge run-off).

Customer deposits increased 1% over the quarter to $667.5 billion, with solid growth in transaction accounts.

Asset quality improves

Another highlight was that the bank’s asset quality showed further signs of resilience.

Its credit impairment charge was $170 million for the quarter, and the ratio of non-performing exposures to gross loans and acceptances fell 8 basis points to 1.47%.

Provision coverage remains strong, with the collective provision to credit risk-weighted assets ratio at 1.31%.

Strong start to FY 2026

NAB’s CEO, Andrew Irvine, was pleased with the bank’s start to the year. He said:

We have started FY26 strongly. Underlying profit rose 12% compared with the 2H25 quarterly average, driven by increases across each of our customer facing divisions and a supportive Australian economic environment. Pleasingly, asset quality outcomes also improved over 1Q26 and we have maintained appropriate balance sheet settings.

Disciplined execution of our strategy has delivered further progress this quarter across our key priorities of growing business banking, driving deposit growth and strengthening proprietary home lending. Australian business lending rose 2% including 3% growth from Business & Private Banking (B&PB), with market share gains in SME and total business lending. Australian home lending grew 1.1x system excluding Advantedge run-off, with drawdowns via proprietary channels improving from 41% in 2H25 to 46% in 1Q26.

Speaking about its outlook, Irvine added:

We continue to target productivity savings of more than $450 million for FY26 and for FY26 operating expense growth to be less than FY25 growth of 4.6%. NAB is well placed to manage our bank for the long term and to support our customers, while delivering sustainable growth and returns for shareholders.

The post NAB shares race to record high on strong Q1 update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.