Why I'd buy NAB shares but not Westpac shares

Detailed summary

I've been comparing the latest results, and there's one area of the business that gives me greater confidence in my preferred bank. The post Why I'd buy NAB shares but not Westpac…

I think there are still some good opportunities among Australia's major banks, despite the increasingly challenging economic environment.

But if I were choosing between National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC), I know which I'd prefer.

For me, NAB has a few advantages that could help it perform well over the coming years.

One of the biggest reasons I like NAB is its position as Australia's largest business lender. And I think this could prove valuable in the current environment.

With higher interest rates and cost-of-living pressures weighing on households, I believe having a strong business banking franchise gives NAB another important source of earnings growth.

Businesses need more than mortgages or savings accounts. They rely on banks for financing, payment services, transaction accounts, and advice as they expand.

NAB has spent years building relationships with these customers, and I believe that gives it opportunities to generate more revenue as their banking needs grow.

We're already seeing the benefits. In FY26, its Business and Private Banking division increased lending balances by 10.5%, while deposits grew 6.1%.

Even more encouragingly, the division increased cash earnings by 10.7%, excluding large notable items.

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