tiprankstipranks
Trending News
More News >
National Australia Bank Limited (AU:NAB)
ASX:NAB
Advertisement

National Australia Bank Limited (NAB) AI Stock Analysis

Compare
357 Followers

Top Page

AU

National Australia Bank Limited

(Sydney:NAB)

Rating:71Outperform
Price Target:
AU$43.00
▲(12.36%Upside)
National Australia Bank Limited's stock score is driven by solid technical performance and a favorable valuation, indicating potential for capital appreciation and income. However, financial performance reflects challenges with high leverage and negative cash flows that could impact long-term stability if not addressed. Investors should weigh the attractive dividend yield and positive market momentum against the need for improved cash flow management.

National Australia Bank Limited (NAB) vs. iShares MSCI Australia ETF (EWA)

National Australia Bank Limited Business Overview & Revenue Model

Company DescriptionNational 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 Zealand Banking; and Corporate Functions and Other segments. The company accepts transaction accounts, savings accounts, deposit accounts, and term deposits; and specialized accounts, such as foreign currency, business interest, statutory trust, cash maximiser, community free saver, farm management, and project bank accounts, as well as farm management deposits. National Australia Bank Limited also provides home loans; personal loans; business loans; vehicle and equipment finance; and 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, caravan and trailer, life, and business 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 and internet banking services; small business services; international and foreign exchange solutions; and industry specific banking services. National Australia Bank Limited was founded in 1834 and is based in Melbourne, Australia.
How the Company Makes MoneyNational Australia Bank Limited (NAB) generates revenue through a diverse range of financial products and services. The primary revenue streams include interest income from lending activities, such as personal loans, mortgages, and business loans. Additionally, NAB earns non-interest income through fees and commissions from services like wealth management, insurance, and transaction banking. The bank also profits from trading activities and investment returns. Strategic partnerships and collaborations with other financial institutions and technology providers enhance NAB's service offerings, contributing to its earnings. The bank's focus on digital transformation and customer experience further drives revenue by expanding its market reach and improving operational efficiency.

National Australia Bank Limited Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q4-2024)
|
% Change Since: 11.00%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
NAB's earnings call reflected a mixed performance with balanced highlights and lowlights. While the bank showed strong deposit growth and digital engagement, it faced challenges such as a decline in cash earnings, increased hardship assistance, and asset quality issues. The sentiment is neutral, given the stable operating environment and strategic initiatives to improve customer experience and balance sheet resilience.
Q4-2024 Updates
Positive Updates
Steady Business Lending Growth
Consistent investment in SME franchise supported 42% growth in Business and Private Banking, Business Lending balances over four years. Business lending in BNPB grew by 8%, which was in excess of the system.
Strong Deposit Growth
NAB has grown deposits at 1.6x system in business deposits and 1.1x system in household deposits over the last four years.
Improved Digital Engagement
Launched tools like NAB Goodies loyalty program, which received 2.8 million visits since June and paid over $3 million in cashbacks.
Resilience in Capital and Liquidity
Common equity Tier 1 ratio at 12.35% and strong liquidity coverage ratio well above minimum requirements.
Stabilized NIM Trends
NIM down only two basis points this half, reflecting a more stable operating environment.
Negative Updates
Decline in Cash Earnings
Cash earnings decreased by 8.1% over the year, reflecting a 6.9% decrease in underlying earnings due to lower revenue and higher costs.
Increased Hardship Assistance
Significant increase in customers receiving hardship assistance over the past 12 months, although it has plateaued recently.
Asset Quality Deterioration
Challenging economic conditions have seen asset quality deteriorate across both business and consumer portfolios, with a notable number of single-name exposures.
Competition in Business Lending
Despite being the market leader, NAB noted intense competition in the business lending sector, with some peers showing higher growth rates.
Pressure on Net Promoter Scores
Business Net Promoter Score declined to #4, with Consumer Banking ranked third in mass consumer.
Company Guidance
In the fiscal year 2024 results call, NAB provided detailed guidance on various financial metrics and strategic priorities. The bank reported an 8.1% decrease in cash earnings, primarily due to a 6.9% decline in underlying earnings attributed to lower revenue and higher costs. Despite this, the bank maintained a cash return on equity of 11.6%, with a sustainable dividend payout ratio of 73.7% of cash earnings. The final dividend was $0.85, totaling $1.69 for the year. NAB's common equity Tier 1 ratio stood at 12.35%, above its target range, reflecting its strong capital position. The bank completed $7.4 billion in share buybacks over three years, enhancing its fiscal 2024 return on equity by 85 basis points. Asset quality showed some deterioration, with collective provisioning coverage at 1.47% of credit risk-weighted assets and a total provision balance of $5.2 billion. NAB highlighted a focus on enhancing customer advocacy, investing in strategic growth areas like SME banking, and maintaining prudent balance sheet settings as key priorities for the coming year.

National Australia Bank Limited Financial Statement Overview

Summary
National Australia Bank Limited exhibits strong revenue generation and stable equity levels. However, high leverage and declining profitability margins are concerning. The negative cash flows highlight potential liquidity issues, requiring strategic focus. Overall, while the bank is fundamentally sound, operational efficiency and cash flow management are critical for sustained financial health.
Income Statement
70
Positive
The income statement reveals a mixed performance. The revenue growth rate is volatile, with a notable decline from 2023 to 2024. The gross profit margin remains strong at approximately 96.5% for 2024, indicating cost efficiency. However, the absence of EBIT and EBITDA in 2024 suggests potential issues in operational profitability. Net profit margin declined to 33.8% in 2024 from 14.3% in 2023, reflecting potential profitability concerns.
Balance Sheet
75
Positive
The balance sheet shows a stable financial position with a debt-to-equity ratio of 4.83, indicating high leverage typical in the banking industry. Stockholders' equity has been stable, with a slight increase in 2024. The equity ratio is approximately 5.7%, suggesting a modest reliance on equity financing. Given the scale of assets, the bank maintains a solid equity base, though high leverage poses potential risks.
Cash Flow
60
Neutral
Cash flow analysis presents challenges, with a negative free cash flow in recent years, notably increasing to -37.2 billion in 2024. The operating cash flow to net income ratio is negative, indicating operational cash flow issues. Free cash flow to net income ratio is unfavorable, reflecting strain on cash generation despite profitability. This highlights significant pressure on cash flows, necessitating careful management.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue62.16B51.90B25.87B20.92B26.33B
Gross Profit19.88B19.81B18.20B16.88B14.34B
EBITDA11.19B11.67B10.86B10.11B7.07B
Net Income6.96B7.41B6.89B6.36B2.56B
Balance Sheet
Total Assets1.08T1.06T1.06T926.19B866.86B
Cash, Cash Equivalents and Short-Term Investments2.50B2.89B2.67B26.96B34.65B
Total Debt296.68B289.27B290.64B276.41B257.02B
Total Liabilities1.02T997.69B996.22B863.41B805.57B
Stockholders Equity61.45B61.15B59.03B62.78B61.29B
Cash Flow
Free Cash Flow-37.22B-27.89B27.14B-99.00M32.92B
Operating Cash Flow-35.78B-26.70B28.22B759.00M33.89B
Investing Cash Flow4.69B-4.21B-8.70B-3.69B-702.00M
Financing Cash Flow9.92B6.98B6.01B-22.05B-16.82B

National Australia Bank Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price38.27
Price Trends
50DMA
38.26
Positive
100DMA
35.88
Positive
200DMA
36.65
Positive
Market Momentum
MACD
0.26
Positive
RSI
41.66
Neutral
STOCH
48.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NAB, the sentiment is Neutral. The current price of 38.27 is below the 20-day moving average (MA) of 39.34, above the 50-day MA of 38.26, and above the 200-day MA of 36.65, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 41.66 is Neutral, neither overbought nor oversold. The STOCH value of 48.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:NAB.

National Australia Bank Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUNAB
71
Outperform
$121.14B17.7411.51%4.29%6.86%0.51%
58
Neutral
HK$91.21B5.17-3.21%5.20%7.36%-55.21%
$58.51B13.679.75%5.52%
$15.02B22.2627.30%2.18%
$53.29B22.6610.63%3.45%
$75.04B15.909.85%4.64%
AUCBA
62
Neutral
AU$298.78B30.6013.22%2.50%17.35%0.73%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NAB
National Australia Bank Limited
38.27
2.67
7.50%
ANZGF
ANZ Group Holdings
19.44
0.70
3.74%
CMSQF
Computershare Limited
26.08
9.04
53.05%
MCQEF
Macquarie Group Limited
145.06
9.54
7.04%
WEBNF
Westpac Banking
21.02
3.65
21.01%
AU:CBA
Commonwealth Bank of Australia
177.57
50.09
39.29%

National Australia Bank Limited Corporate Events

National Australia Bank Limited Announces Quotation of New Securities
Jul 7, 2025

National Australia Bank Limited has announced the quotation of 514,967 ordinary fully paid securities on the Australian Securities Exchange (ASX), effective from July 2, 2025. This move is part of a dividend or distribution plan, potentially impacting the company’s capital structure and providing additional liquidity options for stakeholders.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

National Australia Bank Updates Voting Share Control
Jul 1, 2025

National Australia Bank Limited has announced the aggregated percentage of voting shares controlled by its associated entities, following an exemption granted by the Australian Securities and Investments Commission. The notice reveals a slight increase in the percentage of voting shares controlled, which could impact the company’s governance and influence in decision-making processes. This update is crucial for stakeholders as it reflects the bank’s current position in terms of share control and potential influence over its operations.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

NAB Appoints Pete Steel to Lead Digital and AI Initiatives
Jun 23, 2025

National Australia Bank Limited has appointed Pete Steel as Group Executive for Digital, Data, and Artificial Intelligence, a newly created role aimed at enhancing customer experiences through digital and technological advancements. Steel, who brings extensive experience from Lloyds Banking Group and other roles, will lead NAB’s digital initiatives, including the digital bank ubank, and will be instrumental in driving the bank’s strategic focus on customer-centricity. This appointment reflects NAB’s commitment to integrating advanced technologies into its operations to maintain competitive positioning in the financial sector.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

NAB Announces Distribution for Capital Notes 3
Jun 17, 2025

National Australia Bank Limited has announced a distribution for its NAB Capital Notes 3, with a distribution rate of 5.3983% per annum for the period from June 17, 2025, to September 17, 2025. This distribution, fully franked, equates to a cash amount of AUD 1.3607 per note, payable on September 17, 2025, and reflects the bank’s ongoing commitment to providing returns to its investors.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

NAB Announces New Distribution for Capital Notes
Jun 17, 2025

National Australia Bank Limited has announced a new distribution for its NAB Capital Notes 5, with a distribution rate of 5.0483% per annum for the period from June 17 to September 17, 2025. This distribution, fully franked, amounts to AUD 1.2725 per note and reflects NAB’s commitment to providing returns to its investors, potentially strengthening its market position and stakeholder confidence.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

NAB Announces New Distribution for Capital Notes 6
Jun 17, 2025

National Australia Bank Limited has announced a new distribution for its NAB Capital Notes 6, with a fully franked cash amount of AUD 1.2107 per note, payable on 17 September 2025. This announcement reflects NAB’s ongoing commitment to providing returns to its investors, with the distribution rate calculated at 4.8033% per annum for the period from 17 June 2025 to 17 September 2025, based on a 92-day distribution period.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

National Australia Bank Announces New Distribution for Capital Notes
Jun 17, 2025

National Australia Bank Limited has announced a new distribution for its NAB Capital Notes 7, with a distribution rate of 4.5583% per annum for the period from June 17, 2025, to September 17, 2025. The cash amount per note is set at AUD 1.1489, fully franked, and is scheduled for payment on September 17, 2025. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and may influence its market position by showcasing financial stability and shareholder value.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

National Australia Bank Announces New Distribution for Capital Notes
Jun 17, 2025

National Australia Bank Limited has announced a new distribution for its NAB Capital Notes 8, with a distribution amount of AUD 1.1137 per note, fully franked, to be paid on September 17, 2025. The distribution rate for the period is set at 4.4183% per annum, reflecting the bank’s ongoing commitment to providing returns to its stakeholders. This announcement underscores NAB’s stable financial operations and its ability to offer attractive investment opportunities in the current market environment.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

NAB Updates Dividend Distribution Details
Jun 2, 2025

National Australia Bank Limited has issued an update regarding its dividend distribution, specifically addressing changes in the Dividend Reinvestment Plan (DRP) and Bonus Share Plan (BSP) prices. This announcement, which updates a previous notification, is relevant for stakeholders as it provides crucial information about the financial aspects of their investments, potentially impacting investor decisions and market perceptions.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

NAB Schedules Release of 2025 Q3 Trading Update
May 22, 2025

National Australia Bank Limited (NAB) has announced that it will release its third quarter trading update for the 2025 financial year on August 18, 2025. This announcement is significant as it provides stakeholders with insights into NAB’s financial performance and strategic positioning during the quarter, potentially impacting investor decisions and market perceptions.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

NAB Acquires Substantial Stake in Urbanise.com Limited
May 19, 2025

National Australia Bank Limited (NAB) has become a substantial holder in Urbanise.com Limited, acquiring 11,796,136 fully paid ordinary shares, which equates to a 15% voting power. This acquisition, valued at $8,811,713.59, was executed through National Australia Investment Capital Pty Ltd, a subsidiary under NAB’s control, indicating NAB’s strategic interest in expanding its influence within the company.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

NAB Updates Dividend Distribution Details
May 15, 2025

National Australia Bank Limited has updated its previous announcement regarding the distribution of dividends for its ordinary fully paid securities. The update, dated May 15, 2025, pertains specifically to currency information related to the dividend distribution for the six-month period ending March 31, 2025. This update is significant for stakeholders as it provides clarity on the financial details of the distribution, ensuring transparency and accuracy in the bank’s financial communications.

The most recent analyst rating on (AU:NAB) stock is a Buy with a A$34.80 price target. To see the full list of analyst forecasts on National Australia Bank Limited stock, see the AU:NAB Stock Forecast page.

National Australia Bank Appoints New Company Secretary
May 9, 2025

National Australia Bank Limited has announced the appointment of Ms. Claire Hannon as a new Company Secretary, effective from May 9, 2025. This appointment is part of the company’s ongoing efforts to strengthen its corporate governance structure, with Tricia Conte and Paris Nicolaou continuing in their roles as Company Secretaries. The addition of Ms. Hannon is expected to enhance the bank’s operational efficiency and support its strategic objectives.

NAB Reports Strong Half-Year Results and Focuses on Customer Security
May 7, 2025

National Australia Bank announced its 2025 half-year financial results, reporting cash earnings of $3,583 million and a statutory net profit of $3,407 million. The bank declared an interim dividend of 85 cents per share, fully franked, to be paid on July 2, 2025. NAB emphasized its ongoing efforts to protect customers from scams by investing in advanced technology and maintaining a team of dedicated fraud specialists.

NAB Highlights Strategic Risks in HY 2025 Report
May 6, 2025

NAB has released its HY 2025 Risk Factor Report, highlighting key strategic and operational risks that could impact its financial performance and market position. The report underscores the challenges posed by a rapidly changing macro-economic environment, intense competition, and evolving technology trends, including the adoption of AI and digital payment systems. These factors could affect NAB’s ability to maintain profitability, market share, and stakeholder satisfaction.

NAB Releases 2025 Half Year Pillar 3 Report
May 6, 2025

National Australia Bank Limited has released its 2025 Half Year Pillar 3 Report in compliance with the Australian Prudential Regulation Authority’s standards. This report provides detailed insights into the bank’s financial disclosures and regulatory compliance, reflecting its commitment to transparency and adherence to industry standards.

National Australia Bank Announces Dividend Distribution
May 6, 2025

National Australia Bank Limited announced a dividend distribution of AUD 0.85 per ordinary share, related to the six-month period ending March 31, 2025. The ex-dividend date is set for May 12, 2025, with a record date of May 13, 2025, and payment scheduled for July 2, 2025. This announcement reflects the bank’s ongoing commitment to returning value to its shareholders and may impact investor sentiment positively.

NAB Emphasizes Digital Transformation in 2025 Half Year Results
May 6, 2025

NAB’s 2025 Half Year Results presentation highlights the company’s focus on digital transformation and innovation as key strategies for growth. The presentation provides insights into various financial aspects, including housing lending, deposits, asset quality, and sustainability, indicating a comprehensive approach to strengthening its market position and addressing stakeholder interests.

NAB Reports Modest Earnings Growth Amid Strategic Overhaul
May 6, 2025

National Australia Bank Limited reported a 0.8% increase in cash earnings for the first half of 2025 compared to the second half of 2024, driven by underlying profit growth and lower credit impairment charges, despite a higher tax rate. The bank is executing a refreshed strategy aimed at improving customer advocacy, simplifying operations, and modernizing technology, with significant progress in home lending and retail transaction accounts. NAB maintains a strong balance sheet with a CET1 ratio of 12.01% and has raised over $20 billion in funding. The bank is optimistic about economic growth in Australia and New Zealand but remains cautious due to global trade tensions. NAB is also investing in community support initiatives, such as disaster relief and enhancing banking services.

NAB Releases 2025 Half-Year Results with Focus on Reconciliation
May 6, 2025

National Australia Bank Limited (NAB) has released its half-year results for 2025, which were submitted to the Australian Securities Exchange. The report is meant to be reviewed alongside the 2024 Annual Report. NAB also acknowledges the Traditional Custodians of the land, emphasizing its commitment to supporting reconciliation in Australia.

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.Date of analysis: Jun 28, 2025