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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:62Neutral
Price Target:
$15.00
â–²(7.30% Upside)
The score is held back primarily by inconsistent earnings quality and especially volatile cash generation, plus balance-sheet caution from the 2025 equity step-down. These risks are partly offset by a positive technical trend, supportive dividend yield, and a generally constructive earnings-call read (growth in business lending/deposits and solid capital), despite higher impairments and cost headwinds.
Positive Factors
Strong Business Banking Performance
The growth in business lending indicates a robust market position and effective strategies in business banking, supporting long-term revenue stability.
Increase in Customer Deposits
A higher proportion of lending funded by customer deposits enhances financial stability and reduces reliance on external funding, strengthening the bank's balance sheet.
Launch of NAB Goodies Loyalty Program
The successful launch of the loyalty program boosts customer engagement and retention, potentially leading to increased customer lifetime value and competitive advantage.
Negative Factors
Decrease in Cash Earnings
A decline in cash earnings reflects challenges in revenue generation and cost management, potentially impacting profitability and strategic investments.
Asset Quality Deterioration
Deteriorating asset quality could lead to higher credit losses and provisioning, affecting the bank's financial health and risk profile.
Competitive Pressures in Home Lending
Intense competition in home lending may compress margins and limit growth opportunities, challenging the bank's ability to maintain market share.
National Australia Bank (NABZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$93.28B
Dividend Yield3.92%
Average Volume (3M)9.49K
Price to Earnings (P/E)21.6
Beta (1Y)0.55
Revenue Growth-6.80%
EPS Growth-3.92%
CountryUS
Employees39,976
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.35
Shares Outstanding6,135,045,400
10 Day Avg. Volume9,359
30 Day Avg. Volume9,489
Financial Highlights & Ratios
PEG Ratio-1.62
Price to Book (P/B)2.14
Price to Sales (P/S)2.30
P/FCF Ratio19.52
Enterprise Value/Market Cap4.55
Enterprise Value/Revenue10.93
Enterprise Value/Gross Profit42.71
Enterprise Value/Ebitda89.15
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
Income performance is profitable but less reliable year-to-year, with a sharp 2025 revenue step-up alongside meaningful net margin compression and lower net income versus 2023–2024. The balance sheet shows typical bank leverage but is constrained by a notable equity decline and resized asset base in 2025. Cash flow is the key weakness, with large multi-year operating/free-cash-flow swings despite a 2025 rebound.Income Statement
Revenue shows a sharp step-up in 2025 (annual growth of 93.5%), but profitability also reset meaningfully: net margin fell to ~11.2% in 2025 versus ~33–38% in 2021–2024. Net income declined from 2023–2024 levels (about $7.4B–$7.0B) to ~$4.35B in 2025, suggesting weaker earnings quality despite the revenue surge. Overall, the income profile is profitable but less stable year-to-year than it initially appears.72
Positive
Balance Sheet
The balance sheet reflects a high-leverage banking model, with debt-to-equity consistently elevated (~2.2x–4.8x) and still ~4.6x in 2025. Equity declined versus 2024 (from ~$61.5B to ~$41.7B) alongside a sizable reduction in assets, indicating a notable balance sheet resize. Returns on equity are steady but not exceptional (roughly ~10–12% across years), which supports the score, while the high leverage and equity step-down are key constraints.64
Positive
Cash Flow
Cash flow is the weakest vertical due to major volatility: operating cash flow swung from strongly positive in 2020 and 2022 to deeply negative in 2023–2024, then back to positive in 2025. Free cash flow similarly moved from large positives (2020/2022) to large negatives (2023–2024) and recovered in 2025; however, 2025 free cash flow still contracted sharply versus the prior year (growth of about -110.5%). On the positive side, 2025 free cash flow covered most of net income (~0.83x), but the multi-year swings reduce confidence in consistency.41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.83B | 58.68B | 20.62B | 19.83B | 18.45B | 16.93B |
| Gross Profit | 9.93B | 0.00 | 20.62B | 20.63B | 18.45B | 16.68B |
| EBITDA | 4.76B | 9.54B | 0.00 | 0.00 | 10.86B | 10.11B |
| Net Income | 6.69B | 6.58B | 6.96B | 7.41B | 6.89B | 6.36B |
Balance Sheet | ||||||
| Total Assets | 1.11T | 1.11T | 1.08T | 1.06T | 1.06T | 925.97B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 0.00 | 112.94B | 120.20B | 144.53B | 109.21B |
| Total Debt | 290.45B | 290.45B | 296.68B | 196.31B | 486.90B | 169.84B |
| Total Liabilities | 1.05T | 1.05T | 1.02T | 997.58B | 996.09B | 863.19B |
| Stockholders Equity | 63.09B | 63.09B | 61.45B | 61.15B | 59.03B | 62.78B |
Cash Flow | ||||||
| Free Cash Flow | 6.88B | 6.92B | -37.22B | -27.89B | 27.14B | -99.00M |
| Operating Cash Flow | 8.28B | 8.29B | -35.78B | -17.54B | 28.22B | 759.00M |
| Investing Cash Flow | -5.68B | -5.56B | 4.69B | -4.21B | -8.70B | -3.69B |
| Financing Cash Flow | 2.78B | 2.65B | 9.92B | -2.18B | 6.01B | -22.05B |
National Australia Bank Technical Analysis
Positive
13.98
Price Trends
14.06
Positive
14.13
Positive
13.34
Positive
Market Momentum
0.34
Negative
68.18
Neutral
92.14
Negative
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 13.98 is below the 20-day moving average (MA) of 14.53, below the 50-day MA of 14.06, and above the 200-day MA of 13.34, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 68.18 is Neutral, neither overbought nor oversold. The STOCH value of 92.14 is Negative, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $74.71B | 10.98 | 14.58% | 3.67% | 7.43% | 30.31% | |
77 Outperform | $90.30B | 12.15 | 9.44% | 1.71% | 17.50% | 49.25% | |
76 Outperform | $147.07B | 12.95 | 18.00% | 3.27% | 7.52% | 10.40% | |
71 Outperform | $87.00B | 12.87 | 12.79% | 4.14% | 2.20% | -0.17% | |
71 Outperform | $288.04B | 14.88 | 11.85% | 1.80% | -4.37% | 26.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $93.28B | 21.61 | 11.51% | 3.92% | -6.80% | -3.92% |
* Financial Sector Average
NABZY
National Australia Bank
15.31
2.91
23.44%
BBVA
Banco Bilbao
23.20
11.69
101.56%
BCS
Barclays
25.48
10.60
71.23%
ING
ING Groep
29.56
13.98
89.73%
NWG
NatWest Group
17.65
6.98
65.42%
WFC
Wells Fargo
92.01
12.32
15.46%
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.