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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
$86.50B
Dividend Yield3.89%
Average Volume (3M)9.49K
Price to Earnings (P/E)19.5
Beta (1Y)0.59
Revenue Growth-6.80%
EPS Growth-3.92%
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 Cap2.22
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
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
National Australia Bank 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, and New Zealand Banking segments. 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, 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 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:Nov 05, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outcome with strong business lending growth, technology modernization, and revenue growth being offset by higher impairment charges, stable cash earnings, and challenges in certain customer segments. The bank remains focused on its strategic priorities and improving customer experiences.Q4-2025 Updates
Positive Updates
Strong Business Lending Growth
Australian business lending balances increased by 5.8% in the second half, marking the strongest half-yearly improvement in 3.5 years.
Revenue Growth
Overall revenue grew by 2.9% year-over-year, supported by strong volume growth and a stronger market and treasury income.
Dividend Declaration
Declared a final dividend of $0.85, bringing the total dividend for the year to $1.70, aligning with a payout policy of 65% to 75% of cash earnings.
Improved Customer Advocacy Outcomes
The customer advocacy program reported improved outcomes in 12 of the 20 must-win battles, capturing 400,000 points of customer feedback.
Technology Modernization
Significant progress in modernizing technology infrastructure, with 90% of apps running on modern infrastructure in the cloud.
Strong Deposit Growth
Customer deposits increased to 84% of total lending, a significant improvement from 70% in 2019.
Record Transaction Account Growth
Personal Banking total deposits grew by 9%, driven by a 33% increase in transaction accounts opened in branches.
Negative Updates
Higher Impairment Charges
Impairment charges increased due to higher individually assessed charges, particularly in Corporate & Institutional Banking and New Zealand.
Stable Cash Earnings
Cash earnings remained stable over the year, with underlying profit offset by higher impairment charges.
Slight Decline in Return on Equity
Cash return on equity decreased to 11.4% compared to the previous year.
Costs Impacted by Payroll Remediation
Total costs were impacted by charges associated with the review and remediation of payroll issues.
Challenges in High Net Worth and Mass Affluent Segments
Disappointing performance in high net worth and mass affluent segments, despite improvements in other areas.
Fee and Commission Pressure
Lower business lending fees and lower capital markets and structuring fees, affecting fee and commission income.
Company Guidance
During the National Australia Bank (NAB) Full Year 2025 Results Presentation, the bank reported a stable cash return on equity of 11.4%, slightly down from the previous year, and declared a final dividend of $0.85, totaling $1.70 for the year, representing 73.3% of cash earnings. NAB's common equity Tier 1 capital ratio stood at 11.7%, comfortably above the target, with a pro forma ratio of 11.81% after the sale of its remaining 20% interest in MLC Life. The bank's cash earnings remained stable, driven by a 2.9% revenue growth, despite higher impairment charges and costs from payroll issue remediation. They successfully increased business lending balances by 5.8% in the second half, marking the strongest improvement in 3.5 years, and achieved 14% growth in business transaction account balances. NAB's strategy focused on growing its business banking franchise, driving deposit growth, and enhancing home lending, with significant progress noted across these priorities. The liquidity coverage ratio and net stable funding ratio remained above minimum requirements, while the share of total lending funded by customer deposits rose to 84%, up from 70% in 2019.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
Negative
14.06
Price Trends
14.31
Negative
13.56
Positive
12.45
Positive
Market Momentum
-0.02
Positive
45.94
Neutral
27.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NABZY, the sentiment is Negative. The current price of 14.06 is below the 20-day moving average (MA) of 14.20, below the 50-day MA of 14.31, and above the 200-day MA of 12.45, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 27.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $63.33B | 9.18 | 14.58% | 4.05% | 7.43% | 30.31% | |
77 Outperform | $74.13B | 9.97 | 9.44% | 2.00% | 17.50% | 49.25% | |
76 Outperform | $270.09B | 14.17 | 11.56% | 1.98% | -4.37% | 26.41% | |
72 Outperform | $76.00B | 11.55 | 11.71% | 4.53% | 2.20% | -0.17% | |
70 Outperform | $119.29B | 10.43 | 18.00% | 4.07% | 7.52% | 10.40% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $86.50B | 19.53 | 11.51% | 3.89% | -6.80% | -3.92% |
* Financial Sector Average
NABZY
National Australia Bank
14.06
1.46
11.59%
BBVA
Banco Bilbao
20.42
11.14
120.04%
BCS
Barclays
21.75
8.61
65.53%
ING
ING Groep
25.74
10.62
70.24%
NWG
NatWest Group
15.92
6.19
63.62%
WFC
Wells Fargo
86.04
15.02
21.15%
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.