Shares in Value Logo
Product Review Img Vertical

Date : 17/11/2022

National Australia Bank (ASX: NAB) shares surged on FY22 Results, drawing massive Investors’ attention towards the Big Four Banks!

National Australia Bank Limited (ASX: NAB) is among the top four Australian banks based on market capitalization, earnings, and market share. NAB is among the world’s largest banks by market value and assets. Its headquarters are in Melbourne, Australia, and it began operations in 1981. Its subsidiaries include the Bank of New Zealand, JBWere Ltd., and others.

NAB shares rose when the company announced its FY22 results last week. NAB reported positive numbers, so NAB stock is drawing massive investors’ attention not only towards the stock itself, but also towards the big four banks.

Here are our latest news and analysis on ASX-NAB shares.

 

NAB Shares: FY22 Results Highlight

NAB shares surged slightly on FY22 results to trade at $31.35. The current market cap of the company is approximately 98.87 Billion AUD.

National Australia Bank Shares News & Analysis

  1. NAB’s announced statutory NPAT increased by 8.3% to $6.89 billion in FY22.
  2. The company’s cash profits reached $7.1 billion in FY22, an 8.3% rise over the previous year.
  3. After the year, its CET1 capital ratio was 11.51%.
  4. For FY22, NAB has increased its final dividend payout to $0.78 per NAB share, a 16% increase over FY21.
  5. The total dividend for FY22 is $1.51 per share, an increase of 19% from the previous year.

 

Value of NAB Shares: What Else Happened?

The company found this to be a satisfying outcome. The bank said its underlying profit growth was 11.5% higher than previously reported. It remains dedicated to expanding its customer base and doing it efficiently, all while keeping its expenses in check and reinvesting in its future. The value of NAB shares may affect the company’s profit performance.

The amount of money a bank earns on its loans, known as the net interest margin (NIM), decreased by six basis points to 1.65%.

The rise in expenses came at 5.8%, representing a substantial leap from the previous year. Spending went up by 3.9%, with the major contributors being increases in compensation and volume-related costs, technology and investment expenditures, and financial crime and remediation spending, somewhat offset by productivity gains.

Overdue loans and impaired assets declined from 0.94% in loans in FY21 to 0.66% in FY22.

According to the report, the projected benefit of cash rate rises beginning in October 2022 is “expected to be smaller,” while competitive pressures in the home loan market are “likely to grow.” The NIM effect of RBA cash rate increases on unhedged deposits is also predicted to reach its highest point in the first half of FY23.

 

Outlook for NAB Share Price

The significant financial institution predicted that competition in the mortgage loan market will “likely escalate.”

NAB has a growing challenge from the composition of its deposit base, which is increasing financing costs.

The predicted effect of RBA cash rate hikes from October 2022 is “likely to be reduced,” yet the estimated NIM impact on unhedged deposits peaks in the first half of FY23.

Although a higher inflationary result would likely require stronger monetary policy tightening and a more significant economic correction, NAB predicted that the cash rate would reach 3.6% in March 2023.

 

Conclusion

Should you add NAB shares to your “to buy” list?

If we look at the facts, we can see that NAB had another stellar year of growth and increased dividends.

Nonetheless, it’s intriguing to note that NAB is still bringing up intense competition and that the benefits of cash rate rises are predicted to be diminished. There has been a recent drop in the NAB share price, although year-to-date, they are up more than 6%.

Are You Looking To Buy The Best Stocks In 2024?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!

 

Top 5 ASX Stocks
to Buy for Capital Growth in 2024

Shares In Value - Top 5 ASX Stocks to Buy - Cover 2024
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.
ASX insight Stocks Landing

Download Your Free Report

By downloading this report, you agree to our terms and conditions and privacy policy

Scroll to Top

Login

By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Income Stocks - Blogs

Please fill in your details to download the free dividend shares report.

By downloading this report, you agree to our terms and conditions and privacy policy

Just 10 Seconds Away From Your Free Report!
Income Stocks - Popup Blog

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.