Fair enough, absolutely true that the CR during Covid was at very low Sp levels but circumstances then meant they had little choice. And yes, that can absolutely be described as reactive. The problem NAB had was their capital levels were less than the regulator wanted and we had many chicken littles predicting the collapse of our economy and spreading doom and gloom for our banking sector. Of course it turned out NAB (& all the banks) would have got through no worries but to banks, capital adequacy is king and that was that, leaving little choice for Directors. The return to more normal trading levels and market sentiment meant NAB had to manage their surplus capital (as had many other companies) and while many would prefer other ways I have no problem with an on market buy back. One of the reasons NAB capital adequacy was too low in a crisis was previous decisions involving payout ratios for dividends which to me was far too high (and I also never liked the habit of underwriting the DRP!) I have previously been critical of the level of Dividend payout which meant they ended up being between a rock and a hard place in a black swan scenario. Since those times NAB has adopted a much more conservative payout ratio (also required by regulators) so our capital position is much stronger. It should be noted, I am not for one minute lauding NAB or any of the banks, I was simply commenting on the half yearly result and what it would mean to the market. I also believe they should be analysed in relation to market expectations, not the join the dots, buzzwords and the claims of impending doom because of some click bait headline you see on these threads I have also mentioned before that one of the problems the Banks currently have (since the RC) is they have all gone back to core banking so opportunities for growth are limited, another factor which limits what they can do with their capital and means results need to meet expectations because surprises to the upside would be limited. I think the banks provide a sound return for your money however I personally wouldn't be buying at these levels as difficult to see much more upside in return and any deterioration in our economy will most likely see a retrace, but of course anything can happen. I have actually reduced my holdings in NAB by close to 50% at these $33+ levels as I had other places to deploy the capital and it fitted in with some, tax planning - but it's been a good run! This is purely my opinion, not any sort of advice and everyone has their own opinions and circumstances.
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