Why it matters: NAB’s margin and revenue fell over the June quarter.
Even so, it declared a $1.5 billion share buyback to reduce its share count.
Overdue loans rose as higher interest rates pressure some customers.
National Australia Bank’s $1.5 billion on-market share buyback reflects the bank’s strength, analysts said, defying concerns about deteriorating credit quality and margin pressures from ongoing home loan competition over the past quarter.
NAB raked in $1.9 billion in cash earnings over the June quarter, which came in just above expectations and, along with the surprise buyback, helped push its share price up 1.6 per cent to $28.80.
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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
