And NAB Makes Three with Solid Rebound
NAB has joined Westpac and the ANZ in returning to paying an interim dividend after reporting a solid rebound in earnings for the six months to March 31.
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NAB – Macquarie rates the stock as Neutral
Macquarie draws upon the UK experience to estimate the impact upon bank margins of lower rates for lower loan-to value ratio (LVR) mortgages. The Neutral rating and $26.75 target are retained.
Read MoreACCC Gives Green Light to NAB Deal
NAB’s $220 million acquisition of neobank 86 400 has been greenlit by the Australian Competition and Consumer Commission without conditions or fears about reduced competition.
Read MoreNAB – UBS rates the stock as Buy
The first quarter pre-provision profits were in line with expectations. Cash net profit was ahead, given lower credit impairment charges. UBS Buy retained. Target rises to $27 and $25.
Read MoreNAB Result Confirms Rosy Outlook for Banks
NAB has joined CBA in confirming that the country’s big four banks remain in good health as revenue, business and profits ride out the COVID-dominated economy.
Read MoreAPRA Paves Runway To Higher Bank Dividends
In more good news for investors, APRA has eased its dividend guidance for the banks and, from the start of 2021, will no longer be holding lenders to a minimum level of earnings retention.
Read MoreANZ, NAB Face Up To AGMs After Westpac Dangles Dividend Carrot
ANZ Bank and National Bank hold their annual meetings this week and should have an easier ride than Westpac did on Friday. Westpac pledged at the meeting that shareholders will see a return to normal dividend payments in 2021 following a tumultuous year that has swiped the bank’s profits by 66%.
Read MoreInvestors Pin Hopes On Recovery At NAB
Thumbs up from investors for the National Australia Bank’s full-year results, despite the slide in earnings and lower dividend. NAB shares climbed 3.2% to $19.31. That was despite a 10.7% rise in costs for the year which would normally be a big worry for investors and analysts.
Read MoreBank Reporting Evokes Mixed Reaction From Analysts
As expected the COVID-19 pandemic, lockdowns, and the surge in unemployment and business problems whacked every measure at Australia’s big four banks in the year to September 30.
Read MoreDividend Slashed As NAB Earnings Slump 36%
The National Australia Bank has joined rivals ANZ and Westpac in slashing final year dividend after COVID-19 and the recession whacked earnings in the year to September 30.
Read MoreNAB Flags More Impairments As Investors Await ANZ Results
ANZ Bank kicks off the 2019-20 bank reporting season on Thursday but the NAB snuck on in Friday with a pre-release update of its own with news of another $600 million-plus of losses and impairments, including wage underpayments to staff.
Read MoreRBA Issues Banks Clean Bill Of Health Despite “Elevated Risks”
Buried in the Reserve Bank’s latest Financial Stability Review is the best news the country (and the governments) have had since the COVID-19 pandemic started ravaging the economy in February – Australia’s banks are healthy and have more than enough capital to support the economy during the slowdown without getting into trouble.
Read MoreMoody’s Backs “Credit Positive” Sale Of MLC
Credit ratings group, Moody’s likes the NAB’s sale of its MLC wealth advisory business to IOOF. After the $4.5 billion capital raising earlier in the year, Moody’s says the MLC sale will be a significant boost to the bank’s capital adequacy.
Read MoreIOOF Bets Big On Scale & Synergies With $1.4b Deal To Buy MLC
Melbourne-based wealth manager IOOF is buying the National Australia Bank’s final remaining wealth business for $1.5 billion, a move that completes big four banks divestment from the super, wealth management, and insurance businesses.
Read MoreNAB – UBS rates the stock as Buy
National Australia Bank’s third-quarter cash net profit was slightly better than expected due to higher trading income. Revenue grew by 10% on account of recovery in markets and treasury income, reports UBS.
Read MoreNAB Cash Earnings Slip 7%, Warns Costs Targets “Increasingly Challenging”
The update showed that the NAB’s third-quarter cash earnings fell 7% to $1.55 billion from a year ago thanks to what the bank said were early signs of deterioration in credit quality.
Read MoreHas APRA Clarified The Outlook For Banks?
The dividend outlook for banks has weighed heavily on valuations since the onset of the pandemic and the resultant economic slump. Has the prudential regulator, APRA, set minds at rest?
Read MoreAPRA “Strikes A Balance” On Bank Dividends
APRA has eased restrictions around paying dividends in time for the June 30 and September 30 reporting season but told the banks and insurers they should seek “to retain at least half their earnings” when considering payouts.
Read More“Flexibility”: APRA Opens Door On Bank Dividends
The chances of banks resuming paying dividends have risen sharply after the key regulator, the Australian Prudential Regulation Authority (APRA) indicated a change of mind.
Read MoreMoody’s Finds Silver Lining In Shutdown For Local Banks
Global ratings group has found a silver lining in the recession and lockdowns generated by the COVID-19 pandemic – it has made the Australian financial system and the banks, safer.
Read MoreBanks Surge As NAB Pumps Up Capital Raising
Led by NAB which has doubled the size of its capital raising for retail shareholders to $1.25 billion, citing strong demand from small investors, bank shares have staged a remarkable rally on the ASX.
Read MoreA Look At Dividends In The Current Market Environment
As the outlook for earnings has significantly deteriorated and companies conservatively manage balance sheets, the outlook for dividends has been materially impacted. Since the middle of February, over 30% of companies in the ASX200 have deferred, cancelled, suspended, or revised dividends.
Read MoreBanks Well Placed To Weather The COVID Storm
Both KPMG and Deloitte have examined the interim reports from the big four and see them better placed for the immediate future than it might seem from the results which all saw a surge in bad debt provisioning, loan impairments and provisions for compensation.
Read MoreNAB Steers A Hazardous Course
Business loan growth at National Australia Bank is likely over coming months but of greater concern to brokers is the potential for a surge in bad debts.
Read More“Final Deck Clearing”: Analysts Back NAB Action
NAB’s big announcements on Monday, especially the cut to the interim dividend and the decision to raise new capital has largely gone down well.
Read MoreNAB Slashes Dividend As Cash Earnings Crash 51%
So will the other big banks follow the National Australia Bank which is looking for up to $3.5 billion in new capital after cash earnings plunged 51% to just $1.41 billion and the bank slashed its interim dividend 60% to just 30 cents a share?
Read MoreNAB Joins Westpac Flagging $1.1b Earnings Hit
The National Australia Bank has joined Westpac in announcing some balance sheet and earnings tidying up ahead of the release of their interim reports in a couple of week’s time.
Read MoreAPRA Pressures Banks On “Prudent Reductions” To Dividends
APRA, the financial regulator, has told banks, insurers, and other financial groups to think carefully about deciding whether dividends can be paid to shareholders over the rest of this year and into 2021.
Read MoreRBNZ Ratchets Up Pressure On Bank Dividends
It’s getting harder for Australian financial regulators to avoid joining their peers in New Zealand, the UK and EU in ordering banks to suspend their dividends and other capital management moves such as share buybacks.
Read MoreUK Banks Told To Scrap Dividends, Could APRA Follow Suit?
Barclays, RBS, Lloyds, Standard Chartered, Santander and HSBC have all agreed to not proceed with dividends. Will Australian financial regulators follow their peers in the EU and UK and tell major banks to suspend dividends and planned buybacks?
Read MoreBanks In Better Shape For Virus Than For GFC
Analysts argue Australia’s banks are in a much better position to weather this storm than they were in 2008, and have been oversold on that basis.
Read MoreBank Shares Come Under More Selling Pressure
Bank shares took their second pounding of the week so far yesterday after Monday’s thumping and its clear investors were quite blinkered in their approach yesterday.
Read More“A Material Hit”: Bank Margins Squeezed By Lower Rates
The RBA’s rate cut and bets that another will follow in the next month or so have seen questions again raised over the share prices and sustainability of bank dividends at their current levels.
Read MoreNAB – Morgans rates the stock as Hold
National Bank’s quarterly update highlighted some positive themes, the broker notes, continuing on from Commonwealth Bank’s ((CBA)) result earlier in the week. Net interest margin increased slightly on mortgage repricing, although the broker sees offsetting actions required ahead to counter a lower cash rate. Asset quality is sound and capital has increased.
Read MoreNAB Lifts Cash Earnings, Cools On MLC Sale
The National Australia Bank kept its end up in the three months to December with a slightly better than expected cash result.
Read MoreBanks Underperform As Afterpay Soars In 2019
If you exclude the likes of Afterpay Touch, then the financial sector did not help the wider market in 2019.
Read MoreBank Shares Rally After NZ Regulators Lower Capital Hurdles
The shares of Australia’s big four banks rose strongly yesterday after the Reserve Bank of New Zealand watered down its new capital requirements.
Read MoreWhere Do The Banks Sit In The Switch From Growth To Value?
Jamie Nicol, Portfolio Manager for DNR Capital’s Australian Equities High Conviction Fund and SMA, spoke with Informed Investor about the rotation from growth to value.
Read MoreBank Earnings Review: Is The Worst Behind Us?
KPMG’s Major Australian Banks Year-End Analysis Report 2018-19 finds that the four majors reported a combined cash profit after tax from continuing operations of $26.9 billion, down 7.8% on FY2018.
Read MoreNAB Cuts Dividend As Cash Earnings Slip 10.6%
As expected the NAB has followed its rivals in Westpac and the ANZ in cutting returns to shareholders after a slide in earnings and revenue for the year to September 30.
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