Share buy-back by company pushing the price higher. The company again buying shares on the recent highs, weakening the balance sheet ahead of a global monetary tightening cycle, only two years after selling them at 50% of the price to prop' up a weak balance sheet. When will Aussie investors wake up to poor fiduciary managment by the big four.
I love how the headlines credit McEwan as turning NAB around. He presided over a bank during a period when it was literally leant billions at zero by the RBA. An idiot couldn't get that one wrong. He did AUSTRAC. How long do these banks just flout the clear AML/CTF laws unpunished?
Australian banking valuations are putting too much emphasis on rising NIM (80% of their revenue). The RBA has been too slow and inflation is running away. With it banking costs and bad debt risks as housing falls and costs of living/business rise.
The last time Australia saw inflation above 5% (2000) and rising rates it did not have 37% of its residents in mortgage debt on finiancial assets that were six times household income (more like three). Bad debts are going to rise sharply and more than outweigh net margin improvements. That NAB did another buy-back here is pure stupidity and whilst short-term thinking shareholders might like the sugar boost, diminishing the balance sheet ahead of its own forecast of a 10% property price drop in 2023, is plain foolish. Do it in 2023, when the risks better known and the share price likely struggling.
NAB Price at posting:
$31.66 Sentiment: Sell Disclosure: Not Held
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