NAB +1.31% : A quarterly trading update today for the primarily business bank + a surprise $1.5bn share buy-back which was key to the stock’s performance. Overall, with the little detail that was provided, the trends are aligned with others in the sector with higher provisioning, lower NIM’s for the quarter (-3bps to 1.72%) but a strong capital position. Overall revenue declined 2% thanks to the lower margins, higher costs due to higher staff-related expenses and continued IT investment, partly offset by productivity. Unaudited Cash Earnings of $1.90B (-1% QoQ), implying that NAB is well positioned to meet consensus expectations for 4Q23.
- As was the case with CBA, NAB shows confidence in its outlook by launching capital management, and this speaks positively to the resilience of the broader economy.
MM is bullish and long NAB in two portfolios
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