The National Australia Bank Ltd (ASX: NAB) share price finished in the green on Tuesday.
NAB shares climbed 0.86% today, finishing at $30.64 at market close. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell 0.73% today.
Let’s take a look at what is happening at NAB.
New sales targets
NAB is making headlines today amid a decision to bring back KPI [key performance indicator] sales targets for branch staff.
Internal documents reveal the bank is using the targets to sell credit cards, general insurance, and personal loans, The Age reported. Higher uptakes could lead to better earnings for the bank.
There are also targets for boosting home loan drawdowns, according to the ‘KPI Guide Performance Plans’ document seen by the publication. Bank staff reportedly hit their target if they can raise the drawdown by $39 to $60 million a year.
University of Sydney Business School senior lecturer Andrew Grant told the publication the sales targets could create a “cut-throat” culture.
In response to the reports, NAB said financial targets account for less than 20% of the performance of staff. NAB retail executive Krissie Jones added:
We regularly review our performance and reward frameworks so that they encourage the right behaviour to deliver good outcomes for customers
The S&P/ASX 200 Financials Index (ASX: XFJ) finished up 0.99% today. NAB makes up 22.1% of the total market cap of the financials sector on the ASX.
The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price climbed 0.41% today, Westpac Banking Corp (ASX: WBC) shares gained 1.12% while Commonwealth Bank of Australia (ASX: CBA) jumped 1.75%. Conversely, the Macquarie Group Ltd (ASX: MQG) share price dropped 0.44%.
NAB on the ASX recap
The NAB share price has rocketed 17% in the past 12 months, gaining 6% year to date.
In the past month, NAB shares have climbed 0.69% although they have jumped nearly 8% in the past week
NAB has a market capitalisation of about $99 billion based on its current share price.
The post ‘Cut-throat’: Why did NAB make headlines today? appeared first on The Motley Fool Australia.
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More reading
- Why ASX 200 bank shares are storming higher today
- 2 buy-rated ASX 200 dividend shares with top yields
- Is the NAB (ASX:NAB) share price a buy? Top broker expects sector-leading earnings growth
- 2 excellent ASX dividend shares analysts rate as buys
- Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
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 recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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