dividend sustainability

I think NAB will not cut their dividend. If you look at the provisions they have made they are not even 1 years after tax income and as such i doubt the board would alter the divie policy and view the write downs as part of the cycle and not adjust div in face of ordinary cycle. If they start to provide such that they are cutting into earnings and retained capital then they will cut dividend. we are not talking Citibank or other american banks here where they have lost the years income and 2/3rds of their capital. as such I would buy NAB with your ears pinned back given you now have positive funding cost of shares eg u can borrow at less that the dividend cash rate.