National Australia Bank Limited (AU:NAB)
ASX:NAB
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National Australia Bank Limited
(Sydney:NAB)
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Rating:58Neutral
Price Target:
AU$49.00
▲(1.30% Upside)
Action:ReiteratedDate:01/13/26
The score is primarily tempered by high leverage and inconsistent cash flow generation despite solid profitability. Earnings-call commentary supports a stable fundamental outlook (capital strength, deposit funding improvement) but highlights rising impairments and cost issues. Technicals are neutral and valuation is helped by the dividend, but the P/E suggests only moderate value.
Positive Factors
Deposit funding strength
A materially higher share of lending funded by customer deposits reduces reliance on wholesale markets and short-term funding. This durable shift improves liquidity resilience, lowers funding-cost volatility, and supports stable lending growth and margin preservation through credit cycles.
Negative Factors
High leverage
Persistently elevated leverage raises sensitivity to credit cycles and funding shocks, requiring larger capital cushions or profit retention to stabilize ratios. High leverage constrains strategic flexibility and increases the incremental funding cost of growth or asset write-downs.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit funding strength
A materially higher share of lending funded by customer deposits reduces reliance on wholesale markets and short-term funding. This durable shift improves liquidity resilience, lowers funding-cost volatility, and supports stable lending growth and margin preservation through credit cycles.
Read all positive factors
National Australia Bank Limited (NAB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$136.86B
Dividend Yield4%
Average Volume (3M)4.14M
Price to Earnings (P/E)20.0
Beta (1Y)1.07
Revenue Growth-4.56%
EPS Growth-1.63%
CountryAU
Employees39,976
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.09
Shares Outstanding3,067,597,000
10 Day Avg. Volume4,397,818
30 Day Avg. Volume4,141,772
Financial Highlights & Ratios
PEG Ratio-11.24
Price to Book (P/B)2.15
Price to Sales (P/S)2.24
P/FCF Ratio19.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$41.42Price Target Upside-14.36% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering9
EPS Forecast (FY)2.5
Revenue Forecast (FY)AU$22.07B
National Australia Bank Limited Business Overview & Revenue Model
Company Description
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; Corporate and Institutional Banking; New ...
How the Company Makes Money
NAB makes money primarily by earning income from providing banking and financial services. The largest driver is net interest income: the bank collects interest and fees on loans (such as home loans, business loans, and other credit products) and ...
National Australia Bank Limited Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Neutral
NAB's earnings call revealed several positive aspects, such as strong balance sheet growth, successful strategy implementation, and improved customer advocacy. However, challenges remain with higher impairment charges, cost impacts from payroll issues, and concerns about noninterest income growth. Despite these challenges, the positive elements suggest a generally stable outlook.Positive Updates
Strong Balance Sheet and Revenue Growth
NAB's full year 2025 results reflect higher underlying profit supported by a strong balance sheet and revenue growth in the second half. Australian business lending balances increased by 5.8% in the second half, marking the strongest half-yearly improvement in 3.5 years.
Negative Updates
Higher Impairment Charges
Higher impairment charges primarily relate to an increase in individually assessed charges. There were a number of single name exposures in Corporate & Institutional Banking and New Zealand Banking.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Balance Sheet and Revenue Growth
NAB's full year 2025 results reflect higher underlying profit supported by a strong balance sheet and revenue growth in the second half. Australian business lending balances increased by 5.8% in the second half, marking the strongest half-yearly improvement in 3.5 years.
Read all positive updates
Company Guidance
In the National Australia Bank's full year 2025 results presentation, the bank reported a strong performance with a focus on maintaining a robust balance sheet and revenue growth. The Australian business lending balances increased by 5.8% in the second half, marking the strongest half-yearly improvement in 3.5 years. The bank's cash return on equity was reported at 11.4%, with a final dividend of $0.85 per share, bringing the total dividend for the year to $1.70, which represents 73.3% of cash earnings. The common equity Tier 1 capital ratio stood at 11.7%, comfortably above the target, while the liquidity coverage ratio and net stable funding ratio remained well above minimum requirements. NAB made significant strides in growing its business banking franchise and deposit growth, with deposits funding 84% of total lending, a noteworthy improvement from 70% in 2019. The bank also reported a 14% growth in business transaction account balances and a 46% increase in proprietary home lending drawdowns since the first half of 2024. The underlying profit rose by 0.7%, with revenue growth of 2.9%, driven by good volume growth and stronger market and treasury income, despite higher impairment charges.National Australia Bank Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
41
Neutral
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 60.25B | 62.16B | 51.90B | 25.87B | 20.92B |
| Gross Profit | 20.02B | 19.88B | 19.81B | 18.20B | 16.88B |
| EBITDA | 10.26B | 11.19B | 11.67B | 10.86B | 10.11B |
| Net Income | 6.76B | 6.96B | 7.41B | 6.89B | 6.36B |
Balance Sheet | |||||
| Total Assets | 1.11T | 1.08T | 1.06T | 1.06T | 926.19B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 112.94B | 2.89B | 2.67B | 26.96B |
| Total Debt | 289.67B | 281.87B | 289.27B | 290.64B | 276.41B |
| Total Liabilities | 1.05T | 1.02T | 997.69B | 996.22B | 863.41B |
| Stockholders Equity | 62.92B | 61.45B | 61.15B | 59.03B | 62.78B |
Cash Flow | |||||
| Free Cash Flow | 7.10B | -37.22B | -27.89B | 27.14B | -99.00M |
| Operating Cash Flow | 8.51B | -35.78B | -26.70B | 28.22B | 759.00M |
| Investing Cash Flow | -5.71B | 4.69B | -4.21B | -8.70B | -3.69B |
| Financing Cash Flow | 2.72B | 9.92B | 6.98B | 6.01B | -22.05B |
National Australia Bank Limited Technical Analysis
Negative
48.37
Price Trends
45.26
Negative
43.46
Positive
41.87
Positive
Market Momentum
0.08
Positive
39.38
Neutral
29.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NAB, the sentiment is Negative. The current price of 48.37 is above the 20-day moving average (MA) of 47.20, above the 50-day MA of 45.26, and above the 200-day MA of 41.87, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 39.38 is Neutral, neither overbought nor oversold. The STOCH value of 29.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NAB.
National Australia Bank Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$109.17B | 10.98 | 8.26% | 4.53% | 5.21% | -9.07% | |
70 Outperform | AU$291.31B | 12.51 | 13.27% | 3.00% | 6.39% | 7.78% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $16.35B | 11.54 | 21.78% | 2.69% | 6.44% | 22.38% | |
61 Neutral | AU$137.83B | 9.26 | 9.55% | 3.90% | 1.57% | 0.13% | |
58 Neutral | AU$136.86B | 19.98 | 8.08% | 4.00% | -4.56% | -1.63% | |
56 Neutral | AU$71.08B | 12.15 | 10.75% | 3.27% | 3.65% | 1.58% |
* Financial Sector Average
AU:NAB
National Australia Bank Limited
44.74
12.42
38.44%
AU:ANZ
ANZ Group Holdings
36.45
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34.09%
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Computershare Limited
28.39
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-26.56%
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Macquarie Group Limited
194.46
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-1.85%
AU:WBC
Westpac Banking
40.35
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35.60%
AU:CBA
Commonwealth Bank of Australia
174.25
29.81
20.64%
National Australia Bank Limited Corporate Events
NAB to Redeem A$1.9bn NAB Capital Notes 3 in June 2026
Mar 19, 2026
National Australia Bank has elected to redeem all of its NAB Capital Notes 3 (ASX: NABPF), a A$1.874 billion hybrid capital instrument issued in March 2019, on 17 June 2026 under the optional redemption terms. Each note will be redeemed for A$100 ...
NAB sets June 2026 quarterly distribution on Capital Notes 8
Mar 17, 2026
National Australia Bank has announced a quarterly distribution on its NAB Capital Notes 8 (ASX: NABPK), a perpetual, non-cumulative, redeemable capital note security. The payment applies to the distribution period from 17 March 2026 to 16 June 202...
NAB Sets June 2026 Distribution for Capital Notes 6 Hybrid Securities
Mar 17, 2026
National Australia Bank has announced a quarterly distribution for its NAB Capital Notes 6, a listed hybrid security that offers investors floating-rate returns linked to the three-month Bank Bill Swap Rate plus a fixed margin. The notes form part...
NAB Sets June 2026 Distribution for NAB Capital Notes 5
Mar 17, 2026
National Australia Bank has set the quarterly fully franked distribution for its NAB Capital Notes 5 (ASX: NABPH), a perpetual, non-cumulative capital note, for the period from 17 March 2026 to 16 June 2026. The distribution, which reflects a 5.37...
NAB Sets June 2026 Distribution for Capital Notes 7 at 4.8881%
Mar 17, 2026
National Australia Bank has set the quarterly distribution for its NAB Capital Notes 7, a listed hybrid security, at an annualised rate of 4.8881% for the period from 17 March to 16 June 2026. The payment, fully franked and equating to A$1.2321 pe...
NAB Sets June 2026 Quarterly Distribution for NAB Capital Notes 3
Mar 17, 2026
National Australia Bank has announced the next quarterly distribution on its NAB Capital Notes 3 (ASX: NABPF), a perpetual, non-cumulative, convertible hybrid security linked to the bank bill swap rate. The notes pay a floating margin above the th...
NAB Seeks ASX Quotation for New Shares Issued Under Employee Incentive Scheme
Mar 2, 2026
National Australia Bank has applied for quotation on the ASX of 74,180 new fully paid ordinary shares issued on 23 February 2026 under an employee incentive scheme. The modest size of the issuance suggests a routine capital management action linke...
NAB Issues Unquoted Performance Rights Under Employee Incentive Scheme
Mar 2, 2026
National Australia Bank Limited has notified the market of the issue of 1,417 unquoted performance rights under its employee incentive scheme. These NABAM performance rights were issued on 23 February 2026 and are subject to transfer restrictions,...
NAB Announces Executive Leadership Transition as Veteran Shaun Dooley Plans Retirement
Feb 23, 2026
National Australia Bank has announced changes to its Executive Leadership Team, confirming that long-serving Group Executive Shaun Dooley intends to retire by the end of 2026 after a 33-year career at the bank. Dooley has been Group Chief Risk Off...
NAB Issues €1bn Subordinated Notes Convertible to Equity if Non‑Viable
Jan 21, 2026
National Australia Bank Limited has issued €1 billion of fixed reset subordinated notes due January 2036 under its US$100 billion global medium term note programme, structured as regulatory capital that can be converted into fully paid ordin...
NAB Reports Slight Decrease in Controlled Voting Stake in Its Own Shares
Jan 2, 2026
National Australia Bank Limited has notified the Australian Securities Exchange of the aggregated percentage of its own voting shares over which its associated entities have the power to control voting or disposal, as required under an exemption g...
NAB Reports Lapse of 176,949 Performance Rights, Clarifying Issued Capital
Dec 29, 2025
National Australia Bank has notified the market that 176,949 NABAM performance rights have lapsed after the conditions attached to those rights were not met or became incapable of being satisfied as of 22 December 2025. The cessation of these cond...
NAB Seeks ASX Quotation for Shares Released From Employee Incentive Scheme
Dec 29, 2025
National Australia Bank Limited has applied to the ASX for quotation of 530,840 fully paid ordinary shares, with the securities previously issued under an employee incentive scheme and now having their transfer restrictions ceased or about to ceas...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.