Shares in the banking giant are up almost 6% in the month
The post August has been a great month so far for the NAB (ASX:NAB) share price appeared first on The Motley Fool Australia. –
The National Australia Bank Ltd (ASX: NAB) share price is having an August to remember.
At close of trade on Friday, shares in the big four bank were trading for $27.41 – down 0.36%.
For context, the S&P/ASX 200 Index (ASX: XJO) ended 0.29% higher. Since the beginning of the month, NAB shares have risen 5.78% while the benchmark index is 0.85% higher.
This golden August comes off the back of NAB announcing a $2.5 billion share buyback at the end of July. The news saw the NAB share price lift by the end of the day.
Let’s see what’s been affecting NAB this month.
The month so far for NAB
As Motley Fool previously reported, NAB announced it would buy Citi’s home lending portfolio, unsecured lending business, retail deposits business, and private wealth management business for the value of the net assets plus a premium of $250 million.
Citigroup’s Australian consumer business has lending assets of approximately $12.2 billion ($7.9 billion in residential mortgages and $4.3 billion in unsecured debt) and deposits of about $9 billion.
As part of the deal, Citibank senior management and around 800 staff will join NAB on completion. Citigroup’s institutional business in Australia is not a part of the deal.
The purchase is subject to regulatory approval including from the federal Treasurer, the Australian Prudential Regulation Authority (APRA), and the Australian Competition and Consumer Commission (ACCC). If all goes as planned, the deal should be completed by March 2022.
Finally, NAB released a third-quarter trading update. This was not price-sensitive.
NAB’s revenue fell 1% as declines in markets and treasury (M&T) income outweighed higher volumes and margins in its lending businesses.
The bank’s net interest margin (NIM) was broadly stable, reflecting lower deposit and funding costs, partly offset by the impact of low-interest rates and home lending competition.
NAB share price snapshot
Over the past 12 months, the NAB share price has increased by 55.3%. It has outperformed the ASX 200 by 30 percentage points over the period. Year-to-date, however, it has underperformed the ASX 200 by about 3 percentage points.
NAB has a market capitalisation of approximately $90.7 billion.
Should you invest $1,000 in NAB right now?
Before you consider NAB, you’ll want to hear this.
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*Returns as of August 16th 2021
NAB (ASX:NAB) share price named as a buy by leading broker
2 quality ASX dividend shares analysts rate as buys
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.