National Bank (NAB) +1.07%: 1Q21 trading update today so not a lot of information in it, however what we did get was decent. For the quarter, cash profit was $1.65bn which was ahead of market expectations and that was driven by a lower credit impairment charge. Looking at the top line however, revenue was down -3% due to lower Markets & Treasury income however that was cycling off a strong period, the real number was around 1% growth which compares to CBA which is growing the top line at 4%, although NAB are doing a better job on costs. NIM was down slightly, but not by much and they reconfirmed FY guidance for underlying expense growth of 0-2%. There were very low credit impairments (just $15m) while tier 1 capital was 11.7% i.e. strong. That impairment charge is the lowest ever! All in all, a decent result and we remain comfortable with our holdings.
MM remains bullish NAB
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