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National Australia Bank (NABZY)
OTHER OTC:NABZY
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National Australia Bank
(OTC:NABZY)
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Rating:66Neutral
Price Target:―
National Australia Bank's overall score reflects a balance of strong revenue generation and profitability with challenges in cash flow and leverage. The earnings call highlights mixed performance, with positive developments in business banking but ongoing challenges. Technical indicators suggest short-term momentum, but valuation risks need consideration.
National Australia Bank (NABZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$86.04B
Dividend Yield3.89%
Average Volume (3M)9.49K
Price to Earnings (P/E)19.3
Beta (1Y)0.59
Revenue Growth6.07%
EPS Growth-0.29%
CountryUS
Employees39,976
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.35
Shares Outstanding6,126,065,000
10 Day Avg. Volume9,359
30 Day Avg. Volume9,489
Financial Highlights & Ratios
PEG Ratio-13.10
Price to Book (P/B)1.92
Price to Sales (P/S)5.72
P/FCF Ratio-3.17
Enterprise Value/Market Cap2.23
Enterprise Value/Revenue9.56
Enterprise Value/Gross Profit9.56
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
National Australia Bank Business Overview & Revenue Model
Company DescriptionNational Australia Bank (NABZY) is one of the largest financial institutions in Australia, offering a wide range of banking and financial services. It operates in sectors including retail, business, and institutional banking, providing products such as personal banking accounts, credit cards, home loans, business loans, and wealth management services. NABZY serves millions of customers across Australia and New Zealand, focusing on delivering innovative and customer-centric solutions.
How the Company Makes MoneyNational Australia Bank generates revenue primarily through interest income from loans and advances issued to personal, business, and institutional clients. The bank also earns income from fees and commissions related to its various banking services such as transaction accounts, credit cards, and wealth management advisory. Additionally, NAB benefits from trading and investment activities, including foreign exchange and securities trading. The bank has strategic partnerships and collaborations with fintech companies to enhance its digital services and expand its customer base, contributing to its overall earnings.
National Australia Bank Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with solid achievements in business banking and customer deposit growth, while facing challenges like decreased cash earnings and asset quality deterioration. Despite some positive strategic developments, competitive pressures and reduced ROE highlight ongoing challenges.Q4-2024 Updates
Positive Updates
Resilient Australian Economy
The Australian economy has shown resilience with easing inflationary pressures and a potential soft landing anticipated. Business conditions have remained sound, supported by consumer demand and robust levels of business activity.
Strong Business Banking Performance
Business Lending in Business and Private Banking grew by 8% year-on-year, outperforming the system, indicating strong balance sheet outcomes with 35% growth in total lending and 46% growth in deposits over the last four years.
Increase in Customer Deposits
Customer deposits funded 83% of lending, up from 70% in 2019, reflecting a consistent focus on growing customer deposits.
Launch of NAB Goodies Loyalty Program
The NAB Goodies program successfully launched with 2.8 million visits and over $3 million paid in cashbacks since June, enhancing customer engagement.
Improvement in Net Promoter Scores
Business Net Promoter Scores improved in the second half, suggesting better customer experience management compared to the first half.
Negative Updates
Decrease in Cash Earnings
Cash earnings decreased by 8.1% year-on-year, primarily due to a 6.9% decrease in underlying earnings, impacted by lower revenue and higher costs.
Asset Quality Deterioration
Challenging economic conditions led to asset quality deterioration, with non-performing loans increasing by 19 basis points in the second half, impacting both business and consumer portfolios.
Competitive Pressures in Home Lending
Revenue was impacted by competitive pressures in home lending, with margin pressures moderating only in the second half.
Decrease in Return on Equity
Cash return on equity declined to 11.6% from peak levels in FY '23, although remaining in line with returns achieved in 2022.
Company Guidance
During the call, NAB provided guidance on several key metrics for the fiscal year 2024. The bank reported an 8.1% decline in cash earnings, primarily due to a 6.9% decrease in underlying earnings driven by lower revenue and higher costs. The cash return on equity decreased to 11.6%, with a final dividend of $0.85 per share bringing the total dividend to $1.69, representing 73.7% of cash earnings. NAB maintained a strong common equity Tier 1 ratio of 12.35%, comfortably above the target range of 11% to 11.5%. The liquidity coverage ratio and net stable funding ratio remained well above the minimum requirements. Investment spend is set to increase to approximately $1.8 billion in FY '25, up from $1.64 billion in FY '24, with a focus on customer advocacy and technology modernization. Additionally, the bank completed $7.4 billion in buybacks over the last three years, enhancing fiscal 2024 return on equity by around 85 basis points. Despite challenging economic conditions, NAB's collective provisioning coverage stayed robust at 1.47%, with a total collective provision balance of $5.2 billion.National Australia Bank Financial Statement Overview
Summary
National Australia Bank exhibits strong revenue generation and a stable equity position, but faces challenges with cash flow management and high leverage. The profitability metrics are solid, but significant debt levels and negative free cash flow require strategic improvement.Income Statement
The income statement shows moderate growth and profitability. The gross profit margin remains strong, and the net profit margin is healthy despite a decline in net income from the previous year. Revenue growth has been steady over the years, although EBIT has fluctuated, particularly with a notable decline in the most recent year. The absence of EBITDA data limits a thorough evaluation of operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a solid equity position with a stable equity ratio. However, the debt-to-equity ratio indicates a significant level of leverage, which could pose risks in fluctuating market conditions. The return on equity has been consistent, underscoring efficient use of equity capital, yet the substantial liabilities warrant cautious monitoring.68
Positive
Cash Flow
The cash flow statement reveals challenges in cash generation, with negative operating cash flows in recent periods. This is concerning for liquidity, albeit the substantial cash reserves provide some buffer. The free cash flow has been negative, reflecting high capital expenditures and operational challenges. The free cash flow to net income ratio is also unfavorable, necessitating improvements in cash management.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.05B | 20.62B | 19.83B | 18.45B | 16.93B | 17.21B |
| Gross Profit | 20.05B | 20.62B | 20.63B | 18.45B | 16.68B | 17.21B |
| EBITDA | 0.00 | 0.00 | 0.00 | 10.86B | 10.11B | 0.00 |
| Net Income | 6.87B | 6.96B | 7.41B | 6.89B | 6.36B | 3.50B |
Balance Sheet | ||||||
| Total Assets | 1.10T | 1.08T | 1.06T | 1.06T | 925.97B | 866.57B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 112.94B | 120.20B | 144.53B | 109.21B | 160.95B |
| Total Debt | 266.85B | 296.68B | 196.31B | 486.90B | 169.84B | 132.57B |
| Total Liabilities | 1.03T | 1.02T | 997.58B | 996.09B | 863.19B | 805.27B |
| Stockholders Equity | 62.17B | 61.45B | 61.15B | 59.03B | 62.78B | 61.29B |
Cash Flow | ||||||
| Free Cash Flow | -43.41B | -37.22B | -27.89B | 27.14B | -99.00M | 32.92B |
| Operating Cash Flow | -41.94B | -35.78B | -17.54B | 28.22B | 759.00M | 33.89B |
| Investing Cash Flow | -264.00M | 4.69B | -4.21B | -8.70B | -3.69B | -702.00M |
| Financing Cash Flow | 38.30B | 9.92B | -2.18B | 6.01B | -22.05B | -16.82B |
National Australia Bank Technical Analysis
Positive
14.24
Price Trends
14.02
Positive
13.32
Positive
12.26
Positive
Market Momentum
0.01
Positive
49.95
Neutral
36.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NABZY, the sentiment is Positive. The current price of 14.24 is below the 20-day moving average (MA) of 14.38, above the 50-day MA of 14.02, and above the 200-day MA of 12.26, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 36.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NABZY.
National Australia Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $57.36B | 9.24 | 13.80% | 4.46% | 10.03% | 29.51% | |
73 Outperform | $67.54B | 8.89 | 9.83% | 2.22% | 16.06% | 64.31% | |
73 Outperform | $71.48B | 11.09 | 12.08% | 4.86% | 1.13% | -1.14% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $86.04B | 19.26 | 11.51% | 3.89% | 6.07% | -0.29% | |
66 Neutral | $266.78B | 13.71 | 11.56% | 1.92% | -4.18% | 26.41% | |
64 Neutral | $111.66B | 9.93 | 18.32% | 4.00% | 7.86% | 17.13% |
* Financial Sector Average
NABZY
National Australia Bank
14.24
1.63
12.93%
BBVA
Banco Bilbao
20.12
10.59
111.12%
BCS
Barclays
19.62
7.33
59.64%
ING
ING Groep
24.00
7.78
47.97%
NWG
NatWest Group
14.45
5.54
62.18%
WFC
Wells Fargo
86.02
23.39
37.35%
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.