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NAB doubles down on share buyback

NAB has completed its A$2.5 billion share buyback and will commence a further on-market buyback of up to $2.5 billion.

The bank said in a statement that if it completes the second buyback its common equity tier 1 capital ratio will be 11.3 per cent. Its CET1 target range is 10.75 to 11.25 per cent.

At December 31 the bank reported a CET1 capital ratio of 12.4 per cent. Shares bought on-market and cancelled since then reduced the ratio by 32 basis points.

The proposed acquisition of Citigroup’s Australian consumer banking business will reduce the ratio by 31 bps, the proceeds of the BNZ Life sale will lift it by 6 bps and the second buyback will reduce it by 58 bps.

It plans to commence the second buyback following its interim results announcement on May 5.

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