It is trading lower because banks need to meet the 10.5% tier 1 capital ratio requirement.
As NAB is already paying out 90% of profits, it doesn't have as many options but it says that the DRP will accomplish this task.
Further APRA is assessing whether the banks should raise additional. However the market is wrong in that the requirement is for tier 2 capital not tier 1. The difference being subordinated debt can be raised and not equity/cutting the dividend.
IMO NAB will rebound the strongest when people figure this out calmly.
Can Someone Explain NAB V ANZ, page-5
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Last
$39.61 |
Change
-0.460(1.15%) |
Mkt cap ! $121.6B | |||
| Open | High | Low | Value | Volume |
| $40.25 | $40.27 | $39.61 | $238.9M | 6.018M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1146 | $39.61 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $39.65 | 11139 | 1 |
View Market Depth
| Last trade - 16.10pm 25/11/2024 (20 minute delay) ? |
| NAB (ASX) Chart |
