Warning Signs, page-2

Hi Evenbitda

I'm not sure where you're getting your info from. I've copied below a table I prepared recently which sets out ROE and NIM across the big 4 (taken from the annual reports). As you'll see:

• NAB actually has the second-highest ROE of the big 4, and has had for the past two years.
• CBA and WBC have easily the best NIMs, but over the past three years NAB has gone from having the worst NIM, to now being third. Importantly, between FY19 and FY20 it increased its lead over ANZ (from 0.02% in FY19 to 0.14% in FY20), and has narrowed the gap between it and WBC (from -0.34% to -0.26%).

Pretty hard to fault NAB's performance over the past couple of years relative to ANZ and WBC - which explains why in that period it's gone from being the smallest of the big 4 by market cap to the second-biggest. CBA is streets ahead in every metric, but that's why CBA's share price commands a considerable premium.

ROE (cash)

		FY18	FY19	FY20
1	CBA	13.1%	12.1%	10.3%
2	NAB	11.7%	11.4%	6.5%
3	WBC	13%	10.75%	3.83%
4	ANZ	11%	10.9%	6.2%

NIM

		FY18	FY19	FY20
1	CBA	2.14%	2.09%	2.07%
2	NAB	1.85%	1.78%	1.77%
3	WBC	2.13%	2.12%	2.03%
4	ANZ	1.87%	1.76%	1.63%