Stock Analysis Report

National Australia Bank

Executive Summary

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally.

Snowflake Analysis

Excellent balance sheet second-rate dividend payer.

Similar Companies

Share Price & News

How has National Australia Bank's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: NAB has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




AU Banks


AU Market

1 Year Return




AU Banks


AU Market

Return vs Industry: NAB exceeded the Australian Banks industry which returned 7.3% over the past year.

Return vs Market: NAB underperformed the Australian Market which returned 14.6% over the past year.

Shareholder returns

7 Day0.2%-0.4%0.03%
30 Day6.7%4.9%-0.4%
90 Day4.3%7.6%5.7%
1 Year18.2%11.0%13.9%7.3%19.7%14.6%
3 Year4.9%-14.1%7.9%-10.0%38.7%20.2%
5 Year9.8%-27.7%9.5%-20.5%50.7%17.1%

Price Volatility Vs. Market

How volatile is National Australia Bank's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is National Australia Bank undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NAB (A$27.41) is trading below our estimate of fair value (A$29.69)

Significantly Below Fair Value: NAB is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: NAB is poor value based on its PE Ratio (15.3x) compared to the Banks industry average (12.2x).

PE vs Market: NAB is good value based on its PE Ratio (15.3x) compared to the Australian market (18.7x).

Price to Earnings Growth Ratio

PEG Ratio: NAB is poor value based on its PEG Ratio (1.6x)

Price to Book Ratio

PB vs Industry: NAB is overvalued based on its PB Ratio (1.4x) compared to the AU Banks industry average (1.1x).

Next Steps

Future Growth

How is National Australia Bank forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAB's forecast earnings growth (9.6% per year) is above the savings rate (1.1%).

Earnings vs Market: NAB's earnings (9.6% per year) are forecast to grow faster than the Australian market (9.3% per year).

High Growth Earnings: NAB's earnings are forecast to grow, but not significantly.

Revenue vs Market: NAB's revenue (3.6% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: NAB's revenue (3.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NAB's Return on Equity is forecast to be low in 3 years time (11.2%).

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Past Performance

How has National Australia Bank performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NAB has high quality earnings.

Growing Profit Margin: NAB's current net profit margins (29.4%) are lower than last year (31.9%).

Past Earnings Growth Analysis

Earnings Trend: NAB's earnings have declined by -0.4% per year over the past 5 years.

Accelerating Growth: NAB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NAB had negative earnings growth (-14.3%) over the past year, making it difficult to compare to the Banks industry average (-10.6%).

Return on Equity

High ROE: NAB's Return on Equity (9.2%) is considered low.

Return on Assets

Return on Capital Employed

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Financial Health

How is National Australia Bank's financial position? (This company is analysed differently as a bank or financial institution)

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Inventory Level: NAB has a low level of unsold assets or inventory.

Debt Coverage by Assets: NAB's debt is not covered by short term assets (assets are 0.7x debt).

Financial Institutions Analysis

Asset Level: NAB's level of assets compared to its equity is moderate.

Allowance for Bad Loans: NAB has a sufficient allowance for bad loans.

Low Risk Liabilities: NAB's liabilities are made up of primarily low risk sources of funding.

Loan Level: NAB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NAB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: NAB has an appropriate level of bad loans (0.33%)

Next Steps


What is National Australia Bank's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NAB's dividend (6.06%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: NAB's dividend (6.06%) is in the top 25% of dividend payers in the Australian market (5.35%)

Stability and Growth of Payments

Stable Dividend: NAB's dividend payments have been volatile in the past 10 years.

Growing Dividend: NAB's dividend payments have fallen over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.8%), NAB's dividend payments are not well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: NAB's dividends in 3 years are forecast to be covered by earnings (76.5% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Ross McEwan (62yo)



Mr. Ross Maxwell McEwan, B.B.S. has been Group Chief Executive Officer, Managing Director & Director at National Australia Bank Ltd. since December 02, 2019. Mr. McEwan served as Group Chief Executive Offi ...

Leadership Team

Gary Lennon
Chief Financial Officer3.9yrsAU$1.88m0.0036% A$2.9m
Patrick Wright
Chief Technology & Operations Officer0yrsAU$2.70m0.0024% A$1.9m
Sharon Cook
Chief Legal & Commercial Counsel2.8yrsAU$1.22m0.00046% A$370.7k
A. Gall
Chief Customer Officer of Corporate & Institutional Banking5.5yrsAU$1.85m0.0027% A$2.2m
Anthony Healy
Chief Customer Officer of Business & Private Banking2.1yrsAU$2.28m0.0037% A$3.0m
Michael Baird
Chief Customer Officer of Consumer Banking2.8yrsAU$1.70m0.00073% A$588.2k
Rachel Slade
Chief Customer Experience Officer1.3yrsAU$1.38m0.0014% A$1.1m
Shaun Dooley
Chief Risk Officer1.3yrsAU$1.32m0.0020% A$1.6m
Angela Mentis
MD & CEO of Bank of New Zealand2.1yrsAU$2.91m0.0047% A$3.8m
Ross McEwan
Group CEO0.2yrsno data0.00017% A$137.0k


Average Tenure

Experienced Management: NAB's management team is considered experienced (2.1 years average tenure).

Board Members

Ross McEwan
Group CEO0.2yrsno data0.00017% A$137.0k
Philip Chronican
Independent Chairman of the Board0.3yrsAU$1.19m0.0014% A$1.1m
Peeyush Kumar Gupta
Independent Non-Executive Director5.3yrsAU$528.71k0.00025% A$201.5k
Ann Sherry
Independent Non-Executive Director2.3yrsAU$249.47k0.00025% A$201.5k
Kathryn Fagg
Independent Non-Executive Director0.2yrsno datano data
Geraldine McBride
Independent Non Executive Director5.9yrsAU$228.17k0.00026% A$209.5k
Simon McKeon
Non Executive Director0yrsno datano data
David Armstrong
Independent Non Executive Director5.5yrsAU$296.50k0.00042% A$338.4k
Douglas McKay
Independent Non-Executive Director4yrsAU$484.57k0.00034% A$274.0k
Anne Loveridge
Independent Non-Executive Director4.2yrsAU$249.00k0.00034% A$274.0k


Average Tenure


Average Age

Experienced Board: NAB's board of directors are considered experienced (4 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: NAB insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.

Top Shareholders

Company Information

National Australia Bank Limited's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: National Australia Bank Limited
  • Ticker: NAB
  • Exchange: ASX
  • Founded: 1834
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: AU$80.581b
  • Shares outstanding: 2.94b
  • Website:

Number of Employees


  • National Australia Bank Limited
  • 800 Bourke Street
  • Level 4
  • Docklands
  • Victoria
  • Australia


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NAUB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
NALDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
NABASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
NABCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
NABPBASX (Australian Securities Exchange)PERP NON CUM CNV PRF SHS (NAB CPS II)AUAUDDec 2013
NABPDASX (Australian Securities Exchange)FRN CNV PERP AUD5000 'REGS'AUAUDJun 2017
NABPFASX (Australian Securities Exchange)FRN CNV LT2 PERP AUD5000AUAUDMar 2019


National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. It operates through Business and Private Banking, Consumer Banking and Wealth, Corporate and Institutional Banking, and New Zealand Banking segments. The company accepts transaction accounts, savings accounts, term deposits, and deposit accounts; and specialized accounts, such as foreign currency, business interest, statutory trust, community free saver, and farm management accounts. It also provides home loans; personal loans; agribusiness loans; business loans; vehicle and equipment loans; trade and invoice finance, as well as business overdrafts and bank guarantees. In addition, the company offers insurance products consisting of car, home and content, landlord, travel, life, and injury insurance products; and pension, superannuation, self-managed super funds, cash management, and financial planning and advisory services. Further, it provides investment products; credit, debit, and business cards; payments and merchant services; travel services; online banking services; small business services; and international and foreign exchange solutions. National Australia Bank Limited was founded in 1834 and is based in Docklands, Australia. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 10:32
End of Day Share Price2020/02/21 00:00
Annual Earnings2019/09/30

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.