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NAB - National Australia Bank

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The National Australia Bank Ltd (ASX: NAB) share price is having a day to forget on Thursday.

The banking giant’s shares were down as much as 8% after posting a half-year result that fell short of expectations for a number of metrics such as earnings and its dividend.

As a reminder, NAB reported a 17% increase in cash earnings to $4,070 million for the six months ended 31 March. While this is certainly strong growth, it was still short of consensus estimates. For example, the market was expecting cash earnings of $4,151 million and Goldman Sachs was forecasting even higher cash profits at $4,227 million.

These softer earnings unfortunately meant that the NAB dividend also fell short of expectations.

The NAB dividend​

For the first half of FY 2023, NAB declared a fully franked interim dividend of 83 cents per share.

Once again, while this was up strongly (13.7%) from the prior corresponding period, it was a touch short of expectations. Goldman was forecasting the NAB interim dividend to come in at 84 cents per share for the half.

Though, it is worth noting that with the NAB share price currently trading at $26.92, the bank’s interim dividend still offers a juicy yield of approximately 3.1%.
 
sptrawler said:
Funnily enough, the house prices didn't fall to what the experts were expecting either, so much for the experts eh
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Probably on the wrong thread with this.

For anyone wanting to listen to a real expert , look up the podcast " Australia 's Housing Situation " from yesterday's 612 ABC Radio's Nightlife program.

She's the head of research at CoreLogic Australia , so she knows what she's talking about.

NAB is on the hit list of a pamphlet , I picked up from our little buddies , the Greens . ( along with , amongst others , Coles , Woolies , CBA and of course , the usual suspects : Ampol , Santos and Woodside . )
What's their sin , you ask ?
Well , they're all profitable , way too much so , for these economic illiterates , it seems.
 
Yes those people peddle rubbish, that the poor want to hear, then get a scam going by keeping feeding off the poor's plight.

The banks are bad if they make a profit, they are bad if they don't lend money to the poor who can't afford the loan, then they are bad if they lend money to those who couldn't afford it, then they are bad if they don't make a profit and go broke and all those with savings lose their money.
Let's be honest the banks are bad no matter what they do, those shrills who pray on the poor and gullible, by feeding their fears by lambasting the banks, are just terrific people. ?
 
Banks were actually pretty good at one stage going back to the 1960's/70's .. even the local bank manager knew many of the customer's on a personal level took interest in them etc. there was honesty, trust & loyalty back then. People loved, trusted & respected banks.
 
Yes back then you had to make an appointment to see the bank manager about a loan and you had to wear your best clothes, plus have about 25% deposit. Ah the good old days.
I remember going for a loan for a car, the car cost $1,000 and I had that money in a savings account, they would lend me the money but wanted to put a caveat on the savings account. ?
These days there is nothing easier than getting a loan, or a credit card.
Back in the day to get a personal loan most people had to go to loan sharks and companies like AGC, Custom Credit etc and pay huge amounts of interest in the high 20%'s.
Times certainly have changed.
 
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Looks from the report that margins are being squeezed. Competition must be strong as I think most of us thought that rising interest rates would lead to larger margins.
 
Times have changed, thankfully so.
Over past years have done these things, had a couple of wins and a couple of knock-backs also.
 
Knobby22 said:
Looks from the report that margins are being squeezed. Competition must be strong as I think most of us thought that rising interest rates would lead to larger margins.
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From what I've read it sounds like NAB started withdrawing from the property lending due to the bubble and started focusing more on business lending. Their business lending is up 19%.
To me it sounds like clever management, to the experts, well who knows what drives them maybe they can get in at a better price for the dividend?

NAB shares slump as earnings disappoint

National Australia Bank said earnings from home loans fell in the first half, as its shares opened sharply down on concerns about margins and competition.
www.afr.com

From the article:
Cash earnings rose 17 per cent to $4.07 billion for the six months to the end of March, propelled by the higher official cash rate, and NAB will pay an 83¢ a share interim dividend, up from 73¢ in the first half of 2022. Although NAB stepped back from the mortgage wars and let its retail banking profit slide, the result was below consensus.
Its personal banking business shed 0.4 per cent to $785 million in earnings, the result of what NAB chief executive Ross McEwan described as “making choices for more targeted growth against the backdrop of a slowing economy and increasing competition”.

“We’ve taken steps to moderate growth in our retail bank, given the current market dynamics where new loans are being written well below the cost of capital,” Mr McEwan told reporters on Thursday.​


After NAB passed through Tuesday’s rate rise to mortgage and deposit customers in full on Wednesday evening, Mr MrEwan said on Thursday the “net interest margin” had tightened towards the end of the half due to tougher competition for deposits.

NAB’s home lending book grew at 0.6 times system growth, compared with bigger competitor in mortgages Commonwealth Bank, which has grown at 1.2 times. Mr McEwan said the level of cash backs being offered in the mortgage market was tapering, suggesting the number of loans being written below the cost of capital may be reducing.

In contrast to its retail bank, NAB’s powerhouse business bank grew earnings 19.9 per cent to $1.714 billion, with strong underlying profit reflecting volume growth and increased margins.
 
UMike said:
Just as we are heading into a recession.
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Well it is interesting, but when I look at the numbers, I personally find CBA the scary one, but I've been wrong heaps of times.
It is all anyone's guess and everyone has their preferences and different reasons for them.

NAB quarterly results:



CBA quarterly results

 
Topped up with a few early this morning ($26.97). Fingers crossed.
 

KEY POINTS​

  • Why it matters: National Australia Bank has reported a $7.7bn profit for FY23.
  • This was despite a “more challenging environment” that hurt the second half.
  • “Growth is slowing, competitive and inflationary pressures are elevated, and asset quality is deteriorating,” the NAB CEO said.
Cut-throat mortgage competition is here to stay for another year, says National Australia Bank chief executive Ross McEwan, as he prepared investors for more margin pain and delivered a gloomier outlook for the housing market than major rival Westpac earlier this week.

NAB reported an 8.8% jump in cash profits to $7.7 billion! for the 2023 financial year.

P.S. Won't be of any comfort to NAB mortgage holder's bearing the brunt of more pain to come
 
mullokintyre said:
NAB have joined the queue of experts in suggesting that Interest rates have peaked.
View attachment 169127
With that many in agreement, it surely must be right.
Mick
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I wouldn't trust bank forecasts, how many of them got it right with the past 10 back to back rises?

It's hard predicting what will happen a few months out let alone what will happen next year.
 
I absolutely hate and loathe the NAB.
I have banked with them for about 30 years, but it makes no difference.
Today I went to do a BPAY transaction to participate in the MTS SPP.
After doing the transaction, I get logeed out of NAB Internet banking, my account is locked, and I get an SMS on my phone saying the ccount is locked due to suspicous activity.
I have spent the last hour in a continually frustrating battle with some NAB person following the process, but they recon that i am not who i claim i am.
I now have to drive 30 kms into another town to go the the NAB branch cos the bastards closed our local branch.
If you don't hear from me for a few days, I am most likely in Jail.
Mick
 
and treated like royalty if the local constabulary are NAB customers

but watch your blood pressure a heartless NAB isn't worth having a heart attack over

good luck
 
divs4ever said:
and treated like royalty if the local constabulary are NAB customers

but watch your blood pressure a heartless NAB isn't worth having a heart attack over

good luck
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Hard to find a good news story when it comes to the thieving banks.
Of course our deposited funds don't belong to us, it's theirs of course.
 
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