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National Australia Bank

ASX:NAB
Snowflake Description

Excellent balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NAB
ASX
A$48B
Market Cap
  1. Home
  2. AU
  3. Banks
Company description

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. The last earnings update was 146 days ago. More info.


Add to Portfolio Compare Print
  • National Australia Bank has significant price volatility in the past 3 months.
NAB Share Price and Events
7 Day Returns
-9.4%
ASX:NAB
-1.7%
AU Banks
4%
AU Market
1 Year Returns
-37.7%
ASX:NAB
-28.3%
AU Banks
-16.5%
AU Market
NAB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
National Australia Bank (NAB) -9.4% -23.8% -38.2% -37.7% -53.8% -60.7%
AU Banks -1.7% -22.1% -30.5% -28.3% -44.1% -50.7%
AU Market 4% -15.4% -23.5% -16.5% -14.5% -13.9%
1 Year Return vs Industry and Market
  • NAB underperformed the Banks industry which returned -28.3% over the past year.
  • NAB underperformed the Market in Australia which returned -16.5% over the past year.
Price Volatility
NAB
Industry
5yr Volatility vs Market

NAB Value

 Is National Australia Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of National Australia Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for National Australia Bank.

ASX:NAB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 11 analysts.
= Stable Book Value * Return on Equity
= A$19.60 * 9.1%
A$1.79
Book Value of Equity per Share Weighted future Book Value estimates from 8 analysts. A$19.60
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year AU Government Bond Rate 1.1%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:NAB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 1.1%
Equity Risk Premium S&P Global 5.4%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.54
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.54 (1 + (1- 30%) (645.31%))
1.339
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.34
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.08% + (1.339 * 5.44%)
8.37%

Discounted Cash Flow Calculation for ASX:NAB using Excess Returns Model Model

The calculations below outline how an intrinsic value for National Australia Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:NAB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.1% – 8.37%) * A$19.60)
A$0.15
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.15 / (8.37% - 1.08%)
A$2.00
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$19.60 + A$2.00
A$21.61
ASX:NAB Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$21.61
Current discount Discount to share price of A$15.35
= -1 x (A$15.35 - A$21.61) / A$21.61
29%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price National Australia Bank is available for.
Intrinsic value
29%
Share price is A$15.35 vs Future cash flow value of A$21.61
Current Discount Checks
For National Australia Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • National Australia Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • National Australia Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for National Australia Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are National Australia Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:NAB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in AUD A$1.79
ASX:NAB Share Price ** ASX (2020-04-08) in AUD A$15.35
Australia Banks Industry PE Ratio Median Figure of 11 Publicly-Listed Banks Companies 7.35x
Australia Market PE Ratio Median Figure of 515 Publicly-Listed Companies 13.35x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of National Australia Bank.

ASX:NAB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:NAB Share Price ÷ EPS (both in AUD)

= 15.35 ÷ 1.79

8.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • National Australia Bank is overvalued based on earnings compared to the AU Banks industry average.
  • National Australia Bank is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does National Australia Bank's expected growth come at a high price?
Raw Data
ASX:NAB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
5.4%per year
Australia Banks Industry PEG Ratio Median Figure of 6 Publicly-Listed Banks Companies 1.89x
Australia Market PEG Ratio Median Figure of 338 Publicly-Listed Companies 1.07x

*Line of best fit is calculated by linear regression .

ASX:NAB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.58x ÷ 5.4%

1.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • National Australia Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on National Australia Bank's assets?
Raw Data
ASX:NAB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in AUD A$19.33
ASX:NAB Share Price * ASX (2020-04-08) in AUD A$15.35
Australia Banks Industry PB Ratio Median Figure of 11 Publicly-Listed Banks Companies 0.83x
Australia Market PB Ratio Median Figure of 1,613 Publicly-Listed Companies 1.31x
ASX:NAB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:NAB Share Price ÷ Book Value per Share (both in AUD)

= 15.35 ÷ 19.33

0.79x

* Primary Listing of National Australia Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • National Australia Bank is good value based on assets compared to the AU Banks industry average.
X
Value checks
We assess National Australia Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. National Australia Bank has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NAB Future Performance

 How is National Australia Bank expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is National Australia Bank expected to grow at an attractive rate?
  • National Australia Bank's earnings growth is expected to exceed the low risk savings rate of 1.1%.
Growth vs Market Checks
  • National Australia Bank's earnings growth is positive but not above the Australia market average.
  • National Australia Bank's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:NAB Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:NAB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 5.4%
ASX:NAB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 1.6%
Australia Banks Industry Earnings Growth Rate Market Cap Weighted Average -1.5%
Australia Banks Industry Revenue Growth Rate Market Cap Weighted Average 1.3%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.5%
Australia Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:NAB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:NAB Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 17,296 5,403 1
2022-09-30 18,140 6,139 10
2021-09-30 17,868 5,358 11
2020-09-30 17,877 5,218 11
2020-04-08
ASX:NAB Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-09-30 17,004 -5,865 5,004
2019-06-30 17,394 -3,060 5,437
2019-03-31 17,783 -254 5,869
2018-12-31 18,047 -3,804 5,856
2018-09-30 18,310 -7,354 5,842
2018-06-30 18,258 -28,726 5,970
2018-03-31 18,206 -50,097 6,097
2017-12-31 17,703 -40,155 6,089
2017-09-30 17,200 -30,213 6,080
2017-06-30 16,974 -44,087 6,054
2017-03-31 16,857 -18,306 5,944
2016-12-31 17,079 -20,883 6,120

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • National Australia Bank's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
  • National Australia Bank's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:NAB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from National Australia Bank Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NAB Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30 1.93 2.28 1.63 4.00
2021-09-30 1.73 1.98 1.50 6.00
2020-09-30 1.69 2.02 1.45 6.00
2020-04-08
ASX:NAB Past Financials Data
Date (Data in AUD Millions) EPS *
2019-09-30 1.79
2019-06-30 1.96
2019-03-31 2.14
2018-12-31 2.15
2018-09-30 2.16
2018-06-30 2.21
2018-03-31 2.27
2017-12-31 2.28
2017-09-30 2.28
2017-06-30 2.28
2017-03-31 2.25
2016-12-31 2.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • National Australia Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess National Australia Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
National Australia Bank has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NAB Past Performance

  How has National Australia Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare National Australia Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • National Australia Bank's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • National Australia Bank's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • National Australia Bank's 1-year earnings growth is negative, it can't be compared to the AU Banks industry average.
Earnings and Revenue History
National Australia Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from National Australia Bank Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NAB Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 17,004.00 5,004.00 7,143.00
2019-06-30 17,393.50 5,436.50 7,283.50
2019-03-31 17,783.00 5,869.00 7,424.00
2018-12-31 18,046.50 5,855.50 7,324.50
2018-09-30 18,310.00 5,842.00 7,225.00
2018-06-30 18,258.00 5,969.50 7,108.00
2018-03-31 18,206.00 6,097.00 6,991.00
2017-12-31 17,703.00 6,088.50 6,933.00
2017-09-30 17,200.00 6,080.00 6,875.00
2017-06-30 16,973.50 6,053.50 5,768.00
2017-03-31 16,857.00 5,944.00 6,241.00
2016-12-31 17,079.00 6,120.00 6,608.50
2016-09-30 17,301.00 6,296.00 6,976.00
2016-06-30 17,396.00 6,422.50 8,541.00
2016-03-31 17,381.00 6,632.00 8,526.00
2015-12-31 17,542.50 6,604.50 8,328.00
2015-09-30 17,704.00 6,577.00 8,130.00
2015-03-31 18,331.00 5,336.00 9,177.00
2014-12-31 18,170.00 5,162.50 9,555.00
2014-09-30 18,009.00 4,989.00 9,933.00
2014-06-30 17,832.00 5,324.50 9,446.50
2014-03-31 17,277.00 5,546.00 8,755.00
2013-12-31 16,827.00 5,343.00 8,518.00
2013-09-30 16,377.00 5,140.00 8,281.00
2013-06-30 15,751.50 4,700.50 8,389.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • National Australia Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • National Australia Bank used its assets less efficiently than the AU Banks industry average last year based on Return on Assets.
  • Unable to establish if National Australia Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess National Australia Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
National Australia Bank has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NAB Health

 How is National Australia Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of National Australia Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from National Australia Bank Company Filings, last reported 6 months ago.

ASX:NAB Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 55,604.00 309,833.00 187,440.00
2019-06-30 55,604.00 309,833.00 187,440.00
2019-03-31 54,091.00 243,413.00 128,452.00
2018-12-31 54,091.00 243,413.00 128,452.00
2018-09-30 52,712.00 287,879.00 166,473.00
2018-06-30 52,712.00 287,879.00 166,473.00
2018-03-31 52,401.00 231,456.00 161,266.00
2017-12-31 52,401.00 231,456.00 161,266.00
2017-09-30 51,317.00 264,949.00 174,108.00
2017-06-30 51,317.00 264,949.00 174,108.00
2017-03-31 50,856.00 215,269.00 174,757.00
2016-12-31 50,856.00 215,269.00 174,757.00
2016-09-30 51,315.00 277,607.00 183,701.00
2016-06-30 51,315.00 277,607.00 183,701.00
2016-03-31 50,082.00 240,829.00 173,657.00
2015-12-31 50,082.00 240,829.00 173,657.00
2015-09-30 55,513.00 327,762.00 229,721.00
2015-03-31 49,868.00 260,980.00 207,452.00
2014-12-31 49,868.00 260,980.00 207,452.00
2014-09-30 47,908.00 270,800.00 256,471.00
2014-06-30 47,908.00 270,800.00 256,471.00
2014-03-31 47,478.00 240,046.00 166,219.00
2013-12-31 47,478.00 240,046.00 166,219.00
2013-09-30 46,376.00 233,036.00 218,711.00
2013-06-30 46,376.00 233,036.00 218,711.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • National Australia Bank has an acceptable proportion of non-loan assets held.
  • National Australia Bank's liabilities are made up of primarily low risk sources of funding.
  • National Australia Bank has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).
  • National Australia Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • National Australia Bank has a sufficient allowance for bad loans.
  • National Australia Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess National Australia Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. National Australia Bank has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NAB Dividends

 What is National Australia Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
10.81%
Current annual income from National Australia Bank dividends. Estimated to be 8.63% next year.
If you bought A$2,000 of National Australia Bank shares you are expected to receive A$216 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • National Australia Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (3.01%).
  • National Australia Bank's dividend is above the markets top 25% of dividend payers in Australia (7.94%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:NAB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Australia Banks Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 8.8%
Australia Market Average Dividend Yield Market Cap Weighted Average of 366 Stocks 5.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.7%
Australia Bottom 25% Dividend Yield 25th Percentile 3%
Australia Top 25% Dividend Yield 75th Percentile 7.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:NAB Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-09-30 1.36 1.00
2022-09-30 1.39 12.00
2021-09-30 1.30 13.00
2020-09-30 1.28 13.00
2020-04-08
ASX:NAB Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-11-06 1.660 7.194
2019-05-01 1.660 6.052
2018-10-31 1.980 8.048
2018-05-02 1.980 7.235
2017-11-13 1.980 6.739
2017-11-01 1.980 6.298
2017-05-03 1.980 6.444
2016-11-02 1.980 6.422
2016-05-04 1.980 7.371
2015-10-28 1.980 7.215
2015-05-06 1.980 6.112
2014-12-08 1.980 5.469
2014-05-07 1.980 5.895
2013-10-30 1.940 5.635
2013-05-08 1.860 5.835
2012-10-19 1.800 6.544
2012-05-09 1.800 7.372
2011-10-27 1.760 7.328
2011-05-05 1.680 6.986
2010-10-27 1.560 6.239
2010-05-05 1.470 5.974
2009-10-28 1.460 5.359
2009-04-28 1.700 6.835

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of National Australia Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess National Australia Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can National Australia Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. National Australia Bank has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NAB Management

 What is the CEO of National Australia Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ross McEwan
AGE 62
TENURE AS CEO 0.3 years
CEO Bio

Mr. Ross Maxwell McEwan, B.B.S. has been Group Chief Executive Officer, Managing Director & Director at National Australia Bank Ltd. since December 02, 2019. Mr. McEwan served as Group Chief Executive Officer of The Royal Bank of Scotland Group Plc since October 1, 2013 until October 31, 2019 and its Executive Director until October 31, 2019. Mr. McEwan joined Royal Bank of Scotland Group Plc as CEO UK Retail in 2012. Mr. McEwan serves as Director of Royal Bank of Scotland plc (formerly known as Adam & Company Plc) since April 27, 2018. Mr. McEwan served as Chief Executive Officer of Ulster Bank Ltd. until October 31, 2019 and served as its Executive Director since July 28, 2017 until October 31, 2019. He had served as Group Chief Executive Officer of NatWest Markets Plc (formerly known as Royal Bank of Scotland Plc). He served as Chief Executive Officer of National Westminster Bank plc until October 31, 2019. He served as Director of NatWest Markets Plc until April 30, 2018. He served as the Chief Executive of UK Retail of The Royal Bank of Scotland Group plc from August 2012 to October 1, 2013 and also served as its Head of The Institution's Retail Arm since May 2012. Mr. McEwan joined RBS in August 2012. He served as the Chief Executive Officer and Executive General Manager of Commonwealth Bank of Australia and its Group Executive of Retail Banking Services from May 14, 2007 to July 31, 2012. Mr. McEwan served as Head of Retail Banking & Marketing at ASB Bank Limited. He has experience in insurance and investment industries. He served as Managing Director of stock broking business at First NZ Capital Securities from 2002 to 2003 and Chief Executive of National Mutual Life Association of Australasia Ltd/AXA New Zealand Ltd. from 1996 to 2002. He served as Executive Director at The Royal Bank of Scotland plc until October 31, 2019. He has been an Executive Director at The Royal Bank of Scotland Group plc. He served as an Executive Director at National Westminster Bank plc since October 1, 2013 until October 31, 2019. He served as an Executive Director of Commonwealth Bank of Australia since July 31, 2012. He served as a Director of ASB Bank Limited since October 2008. He served as a Director of Preferred Capital Limited from June 18, 2007 to February 2010. Mr. McEwan holds a Bachelor of Business Studies from Massey University, majoring in Industrial Relations and Personnel Management.

CEO Compensation
  • Insufficient data for Ross to compare compensation growth.
  • Insufficient data for Ross to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team Tenure

Average tenure of the National Australia Bank management team in years:

2.3
Average Tenure
  • The tenure for the National Australia Bank management team is about average.
Management Team

Gary Lennon

TITLE
Chief Financial Officer
COMPENSATION
A$2M
TENURE
4.1 yrs

Patrick Wright

TITLE
Chief Technology & Operations Officer
COMPENSATION
A$3M
AGE
52

Sharon Cook

TITLE
Chief Legal & Commercial Counsel
COMPENSATION
A$1M
TENURE
3 yrs

A. Gall

TITLE
Chief Customer Officer of Corporate & Institutional Banking
COMPENSATION
A$2M
TENURE
5.7 yrs

Anthony Healy

TITLE
Chief Customer Officer of Business & Private Banking
COMPENSATION
A$2M
TENURE
2.3 yrs

Mike Baird

TITLE
Chief Customer Officer of Consumer Banking
COMPENSATION
A$2M
TENURE
3 yrs

Rachel Slade

TITLE
Chief Customer Experience Officer
COMPENSATION
A$1M
TENURE
1.5 yrs

Shaun Dooley

TITLE
Chief Risk Officer
COMPENSATION
A$1M
TENURE
1.5 yrs

Angie Mentis

TITLE
MD & CEO of Bank of New Zealand
COMPENSATION
A$3M
TENURE
2.3 yrs

Ross McEwan

TITLE
Group CEO
AGE
62
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the National Australia Bank board of directors in years:

3.3
Average Tenure
61.5
Average Age
  • The tenure for the National Australia Bank board of directors is about average.
Board of Directors

Phil Chronican

TITLE
Independent Chairman of the Board
COMPENSATION
A$1M
AGE
63
TENURE
0.4 yrs

Ross McEwan

TITLE
Group CEO
AGE
62
TENURE
0.3 yrs

David Armstrong

TITLE
Independent Non Executive Director
COMPENSATION
A$297K
AGE
61
TENURE
5.7 yrs

Anne Loveridge

TITLE
Independent Non-Executive Director
COMPENSATION
A$249K
AGE
58
TENURE
4.3 yrs

Geraldine McBride

TITLE
Independent Non Executive Director
COMPENSATION
A$228K
AGE
58
TENURE
6.1 yrs

Peeyush Kumar Gupta

TITLE
Independent Non-Executive Director
COMPENSATION
A$529K
AGE
60
TENURE
5.4 yrs

Doug McKay

TITLE
Independent Non-Executive Director
COMPENSATION
A$485K
AGE
64
TENURE
4.2 yrs

Ann Sherry

TITLE
Independent Non-Executive Director
COMPENSATION
A$249K
AGE
65
TENURE
2.4 yrs

Kathryn Fagg

TITLE
Independent Non-Executive Director
AGE
58
TENURE
0.3 yrs

Simon McKeon

TITLE
Non Executive Director
AGE
63
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by National Australia Bank individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
13. Mar 20 Buy Simon McKeon Individual 13. Mar 20 13. Mar 20 10,000 A$16.12 A$161,192
23. Feb 20 Buy Kathryn Fagg Individual 21. Feb 20 21. Feb 20 8,700 A$27.37 A$238,119
06. Dec 19 Buy Ross McEwan Individual 06. Dec 19 06. Dec 19 5,000 A$25.46 A$127,295
05. Aug 19 Buy Geraldine McBride Individual 02. Aug 19 02. Aug 19 1,743 A$28.25 A$49,240
21. May 19 Sell Philip Chronican Individual 16. May 19 16. May 19 -1,000 A$24.15 A$-24,150
21. May 19 Buy Philip Chronican Individual 16. May 19 16. May 19 10,000 A$24.16 A$241,553
X
Management checks
We assess National Australia Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. National Australia Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NAB News

Simply Wall St News

Is National Australia Bank Limited's (ASX:NAB) Future Growth Already Accounted For In Today's Price?

National Australia Bank is available at a price-to-earnings ratio of 13.3x, showing us it is undervalued relative to the current AU market average of 16.22x , and undervalued based on its latest annual earnings update compared to the Banks average of 13.53x. … However, to properly examine the value of a high-growth stock such as National Australia Bank, we must reflect its earnings growth into the valuation. … A PE ratio of 13.3x and expected year-on-year earnings growth of 10% give National Australia Bank a higher PEG ratio of 1.28x.

Simply Wall St -

Does National Australia Bank Limited (ASX:NAB) Have A Good P/E Ratio?

View our latest analysis for National Australia Bank How Do You Calculate National Australia Bank's P/E Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for National Australia Bank: P/E of 12.57 = A$26.94 ÷ A$2.14 (Based on the year to March 2019.) Is A High P/E Ratio Good? … National Australia Bank saw earnings per share decrease by 5.6% last year.

Simply Wall St -

Have Insiders Been Buying National Australia Bank Limited (ASX:NAB) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in National Australia Bank Limited (ASX:NAB). … See our latest analysis for National Australia Bank The Last 12 Months Of Insider Transactions At National Australia Bank In the last twelve months, the biggest single purchase by an insider was when Group CEO &amp; Director Philip Chronican bought AU$242k worth of shares at a price of AU$24.16 per share. … Insiders at National Australia Bank Have Bought Stock Recently There has been significantly more insider buying, than selling, at National Australia Bank, over the last three months.

Simply Wall St -

Know This Before Buying National Australia Bank Limited (ASX:NAB) For Its Dividend

Could National Australia Bank Limited (ASX:NAB) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. In this case, National Australia Bank likely looks attractive to investors, given its 6.4% dividend yield and a payment history of over ten years. We'd guess that plenty of investors have purchased it for the income. The company also bought back stock equivalent to around 1.0% of market capitalisation this year. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … For the purpose of this article, we only scrutinise the last decade of National Australia Bank's dividend payments. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing.

Simply Wall St -

Risk Factors To Consider Before Investing In National Australia Bank Limited (ASX:NAB)

As a AU$71b market capitalisation company operating in the financial services sector, National Australia Bank Limited (ASX:NAB) has benefited from strong economic growth and improved credit quality as a result of post-GFC recovery. … Growth stimulates demand for loans and impacts a borrower’s ability to repay which directly affects the level of risk National Australia Bank takes on. … Since the level of risky assets held by a bank impacts its cash flow and therefore the attractiveness of its stock as an investment, I will take you through three metrics that are insightful proxies for risk.

Simply Wall St -

National Australia Bank Limited (ASX:NAB): Is It A Smart Long Term Opportunity?

Since National Australia Bank Limited (ASX:NAB) released its earnings in September 2018,. … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of 3.2%

Simply Wall St -

What Kind Of Shareholders Own National Australia Bank Limited (ASX:NAB)?

If you want to know who really controls National Australia Bank Limited (ASX:NAB), then you'll have to look at the makeup of its share registry. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … National Australia Bank has a market capitalization of AU$70b, so it's too big to fly under the radar.

Simply Wall St -

Understated Factors To Consider Before Investing In National Australia Bank Limited (ASX:NAB)

As these large financial institutions revert back to health after the Global Financial Crisis, we are seeing an increase in market confidence, and understanding of, these “too-big-to-fail” banking stocks. … These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … As a large bank in AUD, NAB is exposed to strict regulation which has focused investor attention on the type and level of risks it is subjected to, and higher scrutiny on its risk-taking behaviour.

Simply Wall St -

Imagine Owning National Australia Bank And Wondering If The 29% Share Price Slide Is Justified

At this point some shareholders may be questioning their investment in National Australia Bank Limited (ASX:NAB), since the last five years saw the share price fall 29%. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Looking back five years, both National Australia Bank's share price and EPS declined; the latter at a rate of 0.9% per year.

Simply Wall St -

National Australia Bank Limited (ASX:NAB): What Are The Future Prospects?

Help shape the future of investing tools and you could win a $250 gift card! … The latest earnings update National Australia Bank Limited (ASX:NAB) released in September 2018a

Simply Wall St -

NAB Company Info

Description

National Australia Bank Limited provides financial services to individuals and businesses in Australia, New Zealand, and internationally. It operates through Business and Private Banking, Consumer Banking and Wealth, Corporate and Institutional Banking, and New Zealand Banking segments. The company accepts transaction accounts, savings accounts, term deposits, and deposit accounts; and specialized accounts, such as foreign currency, business interest, statutory trust, community free saver, and farm management accounts. It also provides home loans; personal loans; agribusiness loans; business loans; vehicle and equipment loans; 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, life, and injury 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 banking services; small business services; and international and foreign exchange solutions. National Australia Bank Limited was founded in 1834 and is based in Docklands, Australia.

Details
Name: National Australia Bank Limited
NAB
Exchange: ASX
Founded: 1834
A$48,012,962,153
2,976,625,056
Website: http://www.nab.com.au
Address: National Australia Bank Limited
800 Bourke Street,
Level 4,
Docklands,
Victoria, Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX NAB Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK NAUB.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB NAL Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
CHIA NAB Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
OTCPK NABZ.Y SPONS ADR EACH CNV INTO 5 NPV Pink Sheets LLC US USD 15. Feb 1985
ASX NABPB PERP NON CUM CNV PRF SHS (NAB CPS II) Australian Securities Exchange AU AUD 18. Dec 2013
ASX NABPF FRN CNV LT2 PERP AUD5000 Australian Securities Exchange AU AUD 26. Mar 2019
ASX NABPD FRN CNV PERP AUD1000 'REGS' Australian Securities Exchange AU AUD 02. Jun 2017
Number of employees
Current staff
Staff numbers
34,370
National Australia Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 10:41
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2019/11/14
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.