Changes at the top for NAB
Stock
National Australia Bank (ASX: NAB) $24.87 as at 8/02/2019
Event
NAB is trading slightly below par today after finishing yesterday’s session in a trading halt. The stock stopped trading almost an hour before the close of the session pending an announcement regarding leadership changes.
Overnight, the bank announced that the CEO Andrew Thorburn & Chairman Ken Henry would both leave the bank after a scathing assessment from the Royal Commission, with Director Phil Chronican named as acting CEO.
Along with the changes at the top, NAB put out their first quarter update which looks in line with expectations. The result showed a lack of income growth, with a rise in loans offset by a falling net interest margin (NIM). Note, NAB did not immediately follow the other banks with an out of cycle interest rate rise, allowing the bank to win more business but hurting the margin in the process.
Costs fell 3% as the bank looks to slim down given the lack of growth. Bad debts stayed low, although past due loans did creep higher. NAB are in a reasonable capital position, with CET1 at 10% it is on track to hit APRA’s unquestionably strong mark of 10.5% by the end of FY19.
National Australia Bank (ASX: NAB) Chart
Market Matters Take/Outlook
