Executive Summary
National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless 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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: NAB's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.9%
NAB
2.3%
AU Banks
-0.3%
AU Market
1 Year Return
-7.7%
NAB
-4.3%
AU Banks
-1.6%
AU Market
Return vs Industry: NAB underperformed the Australian Banks industry which returned -4.3% over the past year.
Return vs Market: NAB underperformed the Australian Market which returned -1.6% over the past year.
Shareholder returns
| NAB | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 2.3% | -0.3% |
| 30 Day | 1.2% | 4.4% | 1.5% |
| 90 Day | 23.2% | 21.7% | 9.2% |
| 1 Year | -4.7%-7.7% | -1.3%-4.3% | 1.7%-1.6% |
| 3 Year | -3.5%-18.4% | 2.1%-12.5% | 26.2%10.7% |
| 5 Year | 23.8%-14.8% | 25.6%-5.7% | 68.7%35.5% |
Long-Term 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
2 weeks ago | Simply Wall St
Would Shareholders Who Purchased National Australia Bank's (ASX:NAB) Stock Three Years Be Happy With The Share price Today?2 months ago | Simply Wall St
Here's Why We're Wary Of Buying National Australia Bank's (ASX:NAB) For Its Upcoming DividendValuation
Is National Australia Bank undervalued compared to its fair value and its price relative to the market?
21x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NAB (A$23.65) is trading above our estimate of fair value (A$13.61)
Significantly Below Fair Value: NAB is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NAB is poor value based on its PE Ratio (21x) compared to the AU Banks industry average (11.6x).
PE vs Market: NAB is good value based on its PE Ratio (21x) compared to the Australian market (22.6x).
Price to Earnings Growth Ratio
PEG Ratio: NAB is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: NAB is overvalued based on its PB Ratio (1.3x) compared to the AU Banks industry average (0.9x).
Next Steps
Future Growth
How is National Australia Bank forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
15.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NAB's forecast earnings growth (15.8% per year) is above the savings rate (2%).
Earnings vs Market: NAB's earnings (15.8% per year) are forecast to grow slower than the Australian market (18.1% per year).
High Growth Earnings: NAB's earnings are forecast to grow, but not significantly.
Revenue vs Market: NAB's revenue (6.2% per year) is forecast to grow faster than the Australian market (5.1% per year).
High Growth Revenue: NAB's revenue (6.2% 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 (9.2%).
Next Steps
Past Performance
How has National Australia Bank performed over the past 5 years?
-9.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NAB has high quality earnings.
Growing Profit Margin: NAB's current net profit margins (24.2%) are lower than last year (34.9%).
Past Earnings Growth Analysis
Earnings Trend: NAB's earnings have declined by 9.6% 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 (-40.4%) over the past year, making it difficult to compare to the Banks industry average (-7.8%).
Return on Equity
High ROE: NAB's Return on Equity (5.7%) is considered low.
Next Steps
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
Financial Institutions Analysis
Asset Level: NAB's Assets to Equity ratio (14.1x) is moderate.
Allowance for Bad Loans: NAB has a sufficient allowance for bad loans (322%).
Low Risk Liabilities: 63% of NAB's liabilities are made up of primarily low risk sources of funding.
Loan Level: NAB has an appropriate level of Loans to Assets ratio (67%).
Low Risk Deposits: NAB's Loans to Deposits ratio (116%) is appropriate.
Level of Bad Loans: NAB has an appropriate level of bad loans (0.3%).
Next Steps
Dividend
What is National Australia Bank current dividend yield, its reliability and sustainability?
2.54%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NAB's dividend (2.54%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).
High Dividend: NAB's dividend (2.54%) is low compared to the top 25% of dividend payers in the Australian market (5.03%).
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 reasonable payout ratio (53.3%), NAB's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NAB's dividends in 3 years are forecast to be covered by earnings (71.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Ross McEwan (63 yo)
1.08yrs
Tenure
AU$2,793,181
Compensation
Mr. Ross Maxwell McEwan, B.B.S., CBE., has been Group Chief Executive Officer, Managing Director & Director at National Australia Bank Ltd. since December 02, 2019. Mr. McEwan served as Group Chief Executi...
CEO Compensation Analysis
Compensation vs Market: Ross's total compensation ($USD2.16M) is below average for companies of similar size in the Australian market ($USD3.58M).
Compensation vs Earnings: Insufficient data to compare Ross's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 1.08yrs | AU$2.79m | 0.0016% A$ 1.3m | |
| Group Chief Financial Officer | 4.83yrs | AU$1.61m | 0.0037% A$ 2.9m | |
| Group Executive of Technology & Enterprise Operations | no data | AU$2.34m | 0.0024% A$ 1.9m | |
| Group Executive of Legal & Commercial Services | 3.75yrs | AU$1.09m | 0.00041% A$ 325.8k | |
| Group Executive of People & Culture | 1.25yrs | AU$1.01m | no data | |
| Chief Risk Officer | 2.25yrs | AU$1.23m | 0.0019% A$ 1.5m | |
| Chief Executive of Business Private Banking Division | 0.33yr | AU$536.80k | no data | |
| MD & CEO of Bank of New Zealand | 3yrs | AU$2.30m | 0.0047% A$ 3.7m | |
| Chief Operating Officer | no data | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Manager of Corporate Communications | no data | no data | no data | |
| Head of Capital Markets - Japan and Director | 16.58yrs | no data | no data |
2.6yrs
Average Tenure
60yo
Average Age
Experienced Management: NAB's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 1.08yrs | AU$2.79m | 0.0016% A$ 1.3m | |
| Independent Chairman of the Board | 1.17yrs | AU$841.17k | 0.0013% A$ 1.0m | |
| Independent Non-Executive Director | 6.17yrs | AU$527.60k | 0.00029% A$ 230.4k | |
| Independent Non-Executive Director | 3.17yrs | AU$274.50k | 0.00039% A$ 309.9k | |
| Independent Non-Executive Director | 1.08yrs | AU$193.29k | 0.00026% A$ 206.6k | |
| Independent Non Executive Director | 0.92yr | AU$163.67k | 0.00037% A$ 294.0k | |
| Independent Non Executive Director | 6.42yrs | AU$325.50k | 0.00039% A$ 309.9k | |
| Independent Non-Executive Director | 4.92yrs | AU$513.66k | 0.00036% A$ 286.0k | |
| Independent Non-Executive Director | 5.08yrs | AU$272.00k | 0.00037% A$ 294.0k |
3.2yrs
Average Tenure
63yo
Average Age
Experienced Board: NAB's board of directors are considered experienced (3.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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 12%.
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$79.458b
- Shares outstanding: 3.29b
- Website: https://www.nab.com.au
Number of Employees
Location
- National Australia Bank Limited
- 800 Bourke Street
- Level 1
- Docklands
- Victoria
- 3008
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NABZ.Y | OTCPK (Pink Sheets LLC) | SPONS ADR EACH CNV INTO 5 NPV | US | USD | Feb 1985 | |
| NAUB.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| NAL | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| NAB | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| NAB | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| NABPB | ASX (Australian Securities Exchange) | PERP NON CUM CNV PRF SHS (NAB CPS II) | AU | AUD | Dec 2013 | |
| NABPD | ASX (Australian Securities Exchange) | FRN CNV PERP AUD1000 'REGS' | AU | AUD | Jun 2017 | |
| NABPF | ASX (Australian Securities Exchange) | FRN CNV LT2 PERP AUD1000 | AU | AUD | Mar 2019 | |
| NABPH | ASX (Australian Securities Exchange) | FRN CNV PERP AUD5000 | AU | AUD | Dec 2020 |
Biography
National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. It operates through Business and Private Banking, Personal Banking,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/18 07:05 |
| End of Day Share Price | 2021/01/18 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/09/30 |
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.