NAB’s financial position is now much healthier than a year ago, with asset disposals and a capital raising making notable improvements to the bank’s financial health. In fact, NAB sits in the top quartile among its international peers regarding its common equity tier 1 (CET1) ratio which, given the challenging outlook for the economy over the medium term, should provide the market with a degree of confidence in NAB’s future prospects.
Looking ahead, the disposal of additional non-core assets also has the scope to improve investor sentiment in NAB, with UK-based Clydesdale Bank being relatively problematic in recent years. With NAB trading on a P/E ratio of 12, an upward rerating is on the cards – especially since the wider banking sector has a P/E ratio of 13.
NAB Price at posting:
$27.01 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)