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NAB - National Australia Bank

Dona Ferentes

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NAB shares have soared to their highest level in three-and-a-half years* on Wednesday, rebounding from a small loss in the previous session.

The company’s shares were trading 4.6 per cent higher at $30.23, its highest price since March 2018.

The bank said it was lending more, after working out how to approve mortgage applications quickly and deepening relationships with key business customers.

It beat profit expectations and doubled its final dividend following a strong rebound in performance during the 2021 financial year.

On Wednesday, Macquarie, Morgans, JPMorgan and Citi all upgraded their price targets on the stock.

*of course a bit of capital raise dilution on that raw number
 
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$0.73 fully franked dividend, payable on 5 July 2022. Up 21% on the dividend of the same time last year. Thank you Mr NAB.

2 down and 1 to go.

KH
NAB also beat on 1H expectations and announced a share buy-back worth $2.5b commencing this month.

All trading carries risk, but is there scope for the stock put in a new cycle high over the coming days and potentially break the longer-term resistance at $34?

NAB.png
 
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$0.73 fully franked dividend, payable on 5 July 2022. Up 21% on the dividend of the same time last year. Thank you Mr NAB.

2 down and 1 to go.

KH
Great news, here is an article on the announcement.

National Australia Bank has reported rising cash earnings and hiked its interim dividend, after chief executive Ross McEwan said the major bank had seen the fastest growth in business lending since the global financial crisis.

NAB on Thursday reported cash earnings of $3.48 billion for the six months to March 31, an increase of 4.1 per cent on the prior period, and shareholders will receive an interim dividend of 73¢ per share, up from 60¢ the prior period.
NAB reported cash earnings had increased across its business bank by 17.5 per cent to $1.4 billion and institutional bank by 3.1 per cent to $806 million, while it had decreased by 8.3 per cent to $788 million in personal banking.
The big four bank increased its provision for bad loans by $2 million, as it braces for the potential impact of higher inflation and interest rates, following moves by the central bank to increase the official cash rate by 25 basis points this week.
 
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The big four bank increased its provision for bad loans by $2 million, as it braces for the potential impact of higher inflation and interest rates, following moves by the central bank to increase the official cash rate by 25 basis points this week.
2 million?.. thats a rounding error for a bank!!
mick
 
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NAB, top of 32.66 today at open, low at 31.24, back to 32 at time of my typing.....banks were supported yesterday, today, they are pushing it down..........too hard to loan at higher rates?
 
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will certainly cause some potential borrowers pause and re-assess ( which i think is a good thing )

the RBA guidance of hoping for 2.5% rate by December ( so roughly double that for a mortgage ) will worry some ESPECIALLY since other costs , fees and charges are rising as well ( while wages/salaries tend to lag ) , in a difficult to predict manner

HOWEVER that may trigger different issues in say building construction ( less so in home improvements i would think )
 
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This market is a bit like my laundry days. The sun was out this morning; looked like it was going to be a good day, so I didn't ask Siri which is what I do every morning. I hung my washing out, it's wetter now than when it come out of the machine...........we don't know when it will pour
 
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Had an interesting email from UBank so thought I would do some investigation, it looks like NAB has bought up a techbank platform.

A large proportion of the staff at 86 400 has left since the digital bank’s $220 million takeover by National Australia Bank. About 50 people have left, with some citing a culture clash.

NAB’s acquisition of the digital bank was completed in May last year, but the staff exodus has continued into 2022, according to a report by The Australian. Sources told the publication that many of the resignations were due to the differences in culture between start-up 86 400 and the large incumbent.

“It’s a very different culture at NAB,” one person, speaking anonymously, told The Australian.
Nearly 140 employees of 86 400 went across to NAB in the acquisition, meaning the departures represent more than 35% of that intake.

86 400 head Robert Bell, whose exit was flagged by NAB, left after the transfer of 86 400’s banking business onto NAB’s licence, The Australian reported. Sources told the publication that 86 400 chief risk officer Guy Harding was also understood to be headed for the door. Head of lending Melissa Christy quit the bank last month to take a similar role at AMP.

Travis Tyler, product and marketing chief at 86 400, left NAB to join ASX-listed Zip, while financial planning and analysis manager Harman Shankar quit to join MA Financial. Andrew Ritchie, engineering manager for 86 400, left NAB last month to join Basiq, an open banking platform.

NAB is integrating 86 400 into its digital arm, UBank, using the start-up’s technology but doing away with its brand, The Australian reported. UBank, which has been filling the gaps left by the 86 400 exodus and growing the combined team, plans to refresh its own brand in the first half of the year.
 
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As you must know,nab also bough Citibank au retail banking...
Citibank was good and provided exposure to the world, i have multi currency accounts with them used seamlessly in March across the US and Central America.i am not confident at all the similar oversea exposure will be provided.not happy and feeling more and more blocked
 
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NAB is currently in bear territory. Down 22% down from the high of $33.75. The froth has been blown off.
(I wonder if they'll do another capital raising at $14.15(ish) at some point in the future ?)
have never been a NAB fan , although i did buy Clydesdale Bank ( now VUK ) after the spin-off for what looks now to be suicidal exposure to the UK economy

BUT if the price is right .. i will buy most stocks
 
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have never been a NAB fan , although i did buy Clydesdale Bank ( now VUK ) after the spin-off for what looks now to be suicidal exposure to the UK economy

BUT if the price is right .. i will buy most stocks
Yes I bought VUK in the covid crash around the $1 mark, have since sold but never say never.
As you say, if the price is right.
 

Dona Ferentes

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another oxymoron .... Work Culture

NAB says its head of trading sometimes carries a “souvenir bat” when he walks around the trading room, but it was a “fidget toy” and was not carried “in a threatening manner”.
 
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NAB reported a healthy increase in quarterly profit, the share price tanks, situation normal. 😂

From the article:
NAB said its unaudited cash profit rose 6 per cent over the third quarter from the same time a year ago, as it benefited from an increase in home and business loans, as well as higher interest rates.

The big bank said revenue increased by 2 per cent, but the net interest margin was slightly lower overall because of a fall in income from its markets and treasury divisions.

NAB said the benefit of higher interest rates for the bank in terms of higher income was partly offset by home-loan competition and higher funding costs.

NAB and other big banks have passed on in full the Reserve Bank's 1.75 percentage point rise in interest rates since May to home loan borrowers.

The purchase of Citigroup's Australian consumer business also boosted earnings.

Chief executive Ross McEwan described the bank's quarterly performance as "pleasing".

IDH
 
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