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National Australia Bank Ltd NAB

Morningstar Rating
A$34.73 +0.20 (0.58%)
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Company Report

National Australia Bank Earnings: Business Credit and Lack of Bad Debts Underpin Solid Result

Largely as expected, National Australia Bank’s first-half fiscal 2024 cash profit eased 3% from second-half fiscal 2023 to AUD 3.5 billion. After being squeezed in second half fiscal 2023, net interest margin firmed 1 basis point to 1.72%. Competitive lending rates and bank customers switching to more costly term deposits and saving accounts weighed on margins, but higher returns on deposit and capital hedges provided an offset. We expect these trends to continue into the second half, with a modest improvement in fiscal 2025 due to more favorable pricing on new loans and deposits.

Price vs Fair Value

NAB is trading at a 464% premium.
Price
A$34.53
Fair Value
A$15.00
Uncertainty
Medium
1-Star Price
A$88.28
5-Star Price
A$41.40
Economic Moat
Sbxc
Capital Allocation
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Bulls Say, Bears Say

Bulls

Management focus is on the successful, lower-risk, and profitable domestic banking. Economies of scale, pricing power, a strong balance sheet, and high credit ratings provide a robust platform to drive growth.

Bears

A slowdown in core earnings growth could come from slower business loan growth, margin compression, falling fee income, and a worse-than-expected loan loss outcome.

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News

Trading Information

Previous Close Price
A$34.53
Day Range
A$34.4734.73
52-Week Range
A$25.1035.12
Bid/Ask
A$34.53 / A$34.74
Market Cap
A$107.46 Bil
Volume/Avg
2.9 Mil / 4.4 Mil

Key Statistics

Price/Earnings (Normalized)
15.01
Price/Sales
5.79
Dividend Yield (Trailing)
4.87%
Dividend Yield (Forward)
4.87%
Total Yield
6.64%

Company Profile

National Australia Bank is the most business-focused of the four major banks, holding the largest share of business loans and the number-three spot in home loans. National Australia Bank is currently the second-largest bank by market capitalization, with the franchise covering consumer, small business, corporate, and institutional sectors. Under the UBank brand the bank also owns one of Australia’s largest digital-only banks. Offshore operations in New Zealand round out the group.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Core
Total Number of Employees
38,516

Competitors

Valuation

Metric
NAB
CBA
ANZ
Price/Earnings (Normalized)
15.0121.5112.12
Price/Book Value
1.742.781.20
Price/Sales
5.797.964.51
Price/Cash Flow
11.94
Price/Earnings
NAB
CBA
ANZ

Financial Strength

Metric
NAB
CBA
ANZ
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
NAB
CBA
ANZ
Return on Assets (Normalized)
0.66%0.80%0.65%
Return on Equity (Normalized)
11.36%13.77%10.25%
Return on Invested Capital (Normalized)
Return on Assets
NAB
CBA
ANZ
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RY
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C
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MUFG
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TD
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