NAB share price lags other ASX 200 banks following quarterly update

The National Australia Bank Ltd (ASX: NAB) share price is underperforming those of its peers on Tuesday following the release of the bank’s quarterly trading update.

The bank’s stock has recovered slightly after opening 3.7% lower at $29.56.

The NAB share price is currently $29.69, 3.32% lower than it was at Monday’s close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.04% right now while the S&P/ASX 200 Financials Index (ASX: XFJ) has slumped 0.96%. Most of the major ASX 200 bank shares are also in the red today, slipping between 0.3% and 1.4%, aside from Macquarie Group Ltd (ASX: MQG), which is posting a 0.81% gain at the time of writing.

Let’s take a look at the news weighing on the NAB share price today.

NAB share price falls on quarterly update

The NAB share price is sliding despite the bank posting higher profits and cash earnings for the three months ended 30 June than it did in the same period of 2021.

However, as The Motley Fool Australia’s James Mickleboro reported earlier today, the bank revised its financial year 2022 cost growth guidance once again. It now expects its cost growth to come in at around 3% to 4%.

The bank also revealed its net interest margin (NIM) was “slightly lower” last quarter, driven downwards by markets and treasury. Excluding markets and treasury, it was up slightly amid higher interest rates.

UBS analyst John Story was quoted by The Australian as saying the bank’s NIM “may be a bit disappointing in the context of some banks which have already reported, but the underlying margin trend is as expected”.

Story also reportedly said the update was “very much in line with consensus with few surprises”.

NAB reported $1.85 billion of unaudited statutory profit for the quarter – a 12% increase on that of the prior corresponding period (pcp).

It also boasted $1.8 billion of cash earnings – a 6% lift – and a CET1 ratio of 11.6%.

The post NAB share price lags other ASX 200 banks following quarterly update appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• NAB share price in focus following $1.8bn Q3 cash profit and cost growth revision
• 5 things to watch on the ASX 200 on Tuesday
• Here is the RBA interest rate outlook according to ASX 200 banks
• Is the NAB share price a buy ahead of next week’s quarterly update?
• How are ASX 200 bank shares responding to the RBA rate increase?

Motley Fool contributor Brooke Cooper 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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/DMCrJlP