Executive Summary
National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally.
Rewards
Risk Analysis
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
0.2%
NAB
-0.4%
AU Banks
0.03%
AU Market
1 Year Return
11.0%
NAB
7.3%
AU Banks
14.6%
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
| NAB | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | -0.4% | 0.03% |
| 30 Day | 6.7% | 4.9% | -0.4% |
| 90 Day | 4.3% | 7.6% | 5.7% |
| 1 Year | 18.2%11.0% | 13.9%7.3% | 19.7%14.6% |
| 3 Year | 4.9%-14.1% | 7.9%-10.0% | 38.7%20.2% |
| 5 Year | 9.8%-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
2 weeks ago | Simply Wall St
Don't Sell National Australia Bank Limited (ASX:NAB) Before You Read This1 month ago | Simply Wall St
Can We See Significant Institutional Ownership On The National Australia Bank Limited (ASX:NAB) Share Register?2 months ago | Simply Wall St
How Many National Australia Bank Limited (ASX:NAB) Shares Did Insiders Buy, In The Last Year?Valuation
Is National Australia Bank undervalued compared to its fair value and its price relative to the market?
7.7%
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?
9.6%
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%).
Next Steps
Past Performance
How has National Australia Bank performed over the past 5 years?
-0.4%
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
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
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
Dividend
What is National Australia Bank's current dividend yield, its reliability and sustainability?
6.06%
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
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Ross McEwan (62yo)
0.2yrs
Tenure
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Financial Officer | 3.9yrs | AU$1.88m | 0.0036% A$2.9m | |
| Chief Technology & Operations Officer | 0yrs | AU$2.70m | 0.0024% A$1.9m | |
| Chief Legal & Commercial Counsel | 2.8yrs | AU$1.22m | 0.00046% A$370.7k | |
| Chief Customer Officer of Corporate & Institutional Banking | 5.5yrs | AU$1.85m | 0.0027% A$2.2m | |
| Chief Customer Officer of Business & Private Banking | 2.1yrs | AU$2.28m | 0.0037% A$3.0m | |
| Chief Customer Officer of Consumer Banking | 2.8yrs | AU$1.70m | 0.00073% A$588.2k | |
| Chief Customer Experience Officer | 1.3yrs | AU$1.38m | 0.0014% A$1.1m | |
| Chief Risk Officer | 1.3yrs | AU$1.32m | 0.0020% A$1.6m | |
| MD & CEO of Bank of New Zealand | 2.1yrs | AU$2.91m | 0.0047% A$3.8m | |
| Group CEO | 0.2yrs | no data | 0.00017% A$137.0k |
2.1yrs
Average Tenure
Experienced Management: NAB's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 0.2yrs | no data | 0.00017% A$137.0k | |
| Independent Chairman of the Board | 0.3yrs | AU$1.19m | 0.0014% A$1.1m | |
| Independent Non-Executive Director | 5.3yrs | AU$528.71k | 0.00025% A$201.5k | |
| Independent Non-Executive Director | 2.3yrs | AU$249.47k | 0.00025% A$201.5k | |
| Independent Non-Executive Director | 0.2yrs | no data | no data | |
| Independent Non Executive Director | 5.9yrs | AU$228.17k | 0.00026% A$209.5k | |
| Non Executive Director | 0yrs | no data | no data | |
| Independent Non Executive Director | 5.5yrs | AU$296.50k | 0.00042% A$338.4k | |
| Independent Non-Executive Director | 4yrs | AU$484.57k | 0.00034% A$274.0k | |
| Independent Non-Executive Director | 4.2yrs | AU$249.00k | 0.00034% A$274.0k |
4.0yrs
Average Tenure
61.5yo
Average Age
Experienced Board: NAB's board of directors are considered experienced (4 years average tenure).
Ownership
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: https://www.nab.com.au
Number of Employees
Location
- National Australia Bank Limited
- 800 Bourke Street
- Level 4
- Docklands
- Victoria
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NABZ.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | 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 AUD5000 'REGS' | AU | AUD | Jun 2017 | |
| NABPF | ASX (Australian Securities Exchange) | FRN CNV LT2 PERP AUD5000 | AU | AUD | Mar 2019 |
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, 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 10:32 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/09/30 |
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.