The National Australia Bank Ltd. (ASX: NAB) share price has zipped higher throughout the month of March.
The banking giant’s shares ascended 10% over the period despite a relatively quiet few weeks from the company.
In contrast, the S&P/ASX 200 Financials (ASX: XFJ) is also in the green, climbing 7.49% over the same time frame.
And NAB wasn’t the only ASX 200 financial share to surge lately.
The Commonwealth Bank of Australia (ASX: CBA) share price has lifted around 13% in a month, while Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) have risen 5% and 6%, respectively.
Let’s take a look at what might have pushed the NAB share price higher recently.
What’s driving NAB shares to multi-year highs?
The NAB share price touched a multi-year high of $32.17 yesterday, supported by upbeat investor sentiment.
While there hasn’t been any major news this week, the company did announce a further $2.5 billion buyback.
It appears the market has reacted positively as this will reduce the number of shares on NAB’s registry. In turn, this increases shareholder value as each share is worth more.
Previously, NAB completed a $2.5 billion on-market buyback, which resulted in roughly 87 million ordinary shares being bought back.
The banking giant expects to commence the further buyback following its half year results release on 5 May 2022.
In addition, NAB’s common equity tier 1 (CET1) capital ratio will fall by approximately 58 basis points following the second buyback.
Along with other adjustments made by the company, on a pro forma basis, its CET1 capital ratio would be 11.3%.
Notably, this is much higher than the Australian Prudential Regulation Authority’s (APRA) required benchmark of 10.50%.
NAB share price summary
Adding to its impressive gains, the NAB share price has accelerated by 20% in the past year.
It’s worth noting that at today’s prices, the company’s shares are trading above pre-COVID-19 levels.
NAB commands a market capitalisation of roughly $102.69 billion, making it the fourth largest company on the ASX.
The post Why has the NAB share price surged 10% in the past month? appeared first on The Motley Fool Australia.
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More reading
- Here are 2 ASX 50 dividend shares analysts rate as buys
- Top broker gives its verdict on the NAB share price
- 5 things to watch on the ASX 200 on Friday
- Why are ASX 200 bank shares underperforming on Thursday?
- NAB share price lower despite new $2.5bn buyback
Motley Fool contributor Aaron Teboneras 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 recommended 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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