Bulletin: National Australia Bank Set To Ride Economic Recovery

SYDNEY (S&P Global Ratings) May 6, 2021--Similar to the other Australian major banks that have reported this week, National Australia Bank Ltd. (NAB; AA-/Negative/A-1+) stands to benefit as economic growth resumes under improved operating conditions. A credit impairment writeback of A$128 million--compared with a bad and doubtful debt charge of A$1.2 billion in the prior comparative period--boosted NAB's cash earnings (excluding large notable items in the prior comparative period) by 35%. We predict NAB's credit losses will remain under control at about 30 basis points (bps)-35 bps of gross loans in the next two years. We expect the recovering economy, falling unemployment, and improved consumer and business sentiment to offset risks to NAB from the unwinding of fiscal support and

...May 5, 2021 SYDNEY (S&P Global Ratings) May 6, 2021--Similar to the other Australian major banks that have reported this week, National Australia Bank Ltd. (NAB; ##-/Negative/A-1+) stands to benefit as economic growth resumes under improved operating conditions. A credit impairment writeback of A$128 million--compared with a bad and doubtful debt charge of A$1.2 billion in the prior comparative period--boosted NAB's cash earnings (excluding large notable items in the prior comparative period) by 35%. We predict NAB's credit losses will remain under control at about 30 basis points (bps)-35 bps of gross loans in the next two years. We expect the recovering economy, falling unemployment, and improved consumer and business sentiment to offset risks to NAB from the unwinding of fiscal support and loan deferrals, and the bank's proportionally higher exposure to small and medium enterprises. In our view, NAB's expense control measures, including simplification of operations should offset the...

Bulletin