Ann: Update - Dividend/Distribution - NAB, page-9

The sell off is due to bank earnings probably being as good as they get this cycle… NAB was extremely overpriced at $30s just like CBA in the $90s. They are both the 2 most expensive banks on earth.

1. results came out and confirmed NIM peaked last year, circa October. Hence those essentially growth multiples for banks didn’t stack up, so sold off. Profitability is decreasing with lower NIM going toward due to competition.
2. Rate assumptions have changed, and the completion offsets margin increases from higher eaters unfortunately. So bad debts expected to pick up and the rest of the loan book isn’t expanding its margins since each bank stabbing each other for business.

Hence the sell off.

Ive bought some more big4 banks recently. Will keep adding as more cash flow comes in. Fear is out there, however ANZ and WBC are still quite a bit cheaper than NAB. I hold CBA, however wayyyyyy to expensive to consider buying.