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National Australia Bank Ltd NAB Stock Quote

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Morningstar‘s Stock Analysis NAB

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Is it the right time to buy or sell?

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Economic Moat

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Capital Allocation

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Higher Margin Outlook for Australian Banks, With Loan Repricing Supporting Our Positive Sector View

Nathan Zaia Senior Equity Analyst

Analyst Note

| Nathan Zaia |

The increases in the Reserve Bank of Australia cash rate to arrest inflation will have an impact on key earnings drivers for the banks. With the cash rate currently at 2.35%, and likely north of 3% by year-end, the increases from just 0.1% in April 2022 have been swift. It is expected to slow credit growth, with less borrowing capacity and confidence (a complete turnaround from the fear-of-missing-out environment of recent years). However, we think bank sector revenue growth will be buoyed by higher net interest margins, with the spread between lending rates and the cost of customer deposits widening.

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Key Statistics NAB

Company Profile NAB

Business Description

National Australia Bank is the most business-focused of the four major banks, holding the largest share of business loans and the number-three spot in home loans. National Australia Bank is currently the third-largest bank by market capitalisation, with the franchise covering consumer, small business, corporate, and institutional sectors. Under the UBank brand the bank also owns one of Australia’s largest digital-only banks. Offshore operations in New Zealand round out the group.

Contact
395 Bourke Street, Level 28
Melbourne, VIC, 3000, Australia
T +61 388722461
Industry Banks - Diversified
Most Recent Earnings
Fiscal Year End Sep 30, 2022
Employees 33,433