Stocks of the Hour: NAB, CBA, Suncorp & Westpac

Stocks of the Hour: NAB, CBA, Suncorp & Westpac

 

Banks have been on the move this week.

Commonwealth Bank (ASX:CBA) posted a boost to their dividend, and a $6 billion share buyback on a 20 per cent jump in cash profit yesterday

On Monday Suncorp (ASX:SUN) posted a 42 per cent jump to its cash earnings for the FY21 above expectations announcing a $250 million on-market buyback.

Meanwhile, Westpac (ASX:WBC) made it official to sell their life insurance arm to Japan’s Dai-ichi Life subsidiary TAL Insurance for $900 million inking a 20 year deal to provide their banking customers the continued service.

Today National Australia Bank (ASX:NAB) have posted a trading update so let’s take a look at what investors are looking at.

The nation’s third largest bank posted a third quarter net profit of $1.65 billion and cash earnings of $1.7 billion thanks to improved credit impairment outcomes and growth across their lending book.

For the June quarter, house lending rose 2 per cent while business lending grew 4.3 per cent. New Zealand grew 2.7 per cent in their lending book during the June quarter.

Driving the 10.3 per cent year-on-year earnings headline was the 1 per cent quarterly jump in cash earnings, while cash earnings before tax and credit impairment charges fell 1 per cent. Net interest margin was "broadly stable" and expenses fell 1 per cent.

NAB wrote back $112 million of previously recognised credit impairments due to the Covid-19 which helped boost quarterly earnings. The bank also de-risked its portfolio by selling $1.5 billion in aviation loans.

Today's third quarter update followed NAB's deal to acquire Citi’s retail arm for $1.2 billion announced this week.

NAB shares are trading flat at $27.22.

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Source: Finance News Network

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