It’s shaping up to be a good day for the National Australia Bank Ltd (ASX: NAB) share price.
The banking giant’s stock is lifting 3.71% at the time of writing to trade at $30.99. That sees it among the top performers on the S&P/ASX 200 Index (ASX: XJO).
Meanwhile, the index is posting a 0.52% gain.
So, what might be driving the NAB share price higher into the green on Thursday? Let’s take a look.
What might be boosting the NAB share price today?
There’s been no news to explain the gains posted by the NAB share price on Thursday. Though, the stock isn’t alone in the green.
It’s joined by many of its S&P/ASX 200 Financials Index (ASX: XFJ) peers. The financial sector is climbing 2.34% right now, driven by the Westpac Banking Corp (ASX: WBC) share price’s 4.26% jump.
As is the case with NAB, there’s been no word from the Westpac camp either.
Where there have been whispers, however, is Bank of Queensland Ltd (ASX: BOQ). The smaller ASX 200 bank posted its financial year 2022 earnings yesterday, sending its stock 11% higher.
They came complete with a 15% year-on-year increase in after-tax profits and an upsized 24-cent final dividend, bringing the bank’s full-year offerings to 46 cents per share.
On top of that, Bank of Queensland has been the focus of several brokers’ notes this morning. Goldman Sachs, for one, commented:
One of the key highlights of the [bank’s] FY22 result was the disclosure of its 4Q22 [net interest margin (NIM)], which at 1.81%, was 6 basis points higher than the 2H22 half average NIM. Furthermore, management noted that the exit NIM was well in excess of the 4Q22 NIM.
Fundamentally, this improving NIM outlook is being driven by inertia in deposit pricing as cash rates (and therefore asset interest rates) rise. It is for this reason we continue to believe the major banks are better positioned to benefit from the current environment.
That’s likely good news for NAB and its big four peers, and could be helping to bolster their share prices on Thursday.
The post Why is the NAB share price having such a stellar run today? appeared first on The Motley Fool Australia.
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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 positions in and has recommended Goldman Sachs. 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 Scott Phillips.
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