ASX Shares Big 4 Banking Results

What a Monday morning. For whatever reason, I wasn't expecting NAB's results until 7th May, but they're out this morning.

• Issuing a full franked dividend of 30c (35% payout ratio, much more conservative)
• Net operating income down only 4.3%, underlying profit down 8.1%
• $325m in customer remediation, $775m next half
• Their backward-looking credit impairment charges were actually down but they've added $807m to their forward looking top up to cover COVID19
• Most notably, they're in a trading halt pending capital raising announcement, CET1 after capital raising of $3.5bn expected to be 11.2% (still in APRA's highest tier

The results aren't all that bad and just reflect a very conservative outlook. Nonetheless, market view on the results is unpredictable and share price won't reflect the results today whilst trading is closed.

How does everyone feel about the results?

 

Last year the semi annual dividend was $0.83 cents.
Before that each semi annual dividend payment was .99 cents per share for 5 years.
So .30 cents is a huge drop.

 

Capital raising will hit the share price.

The hedge rate they are getting on their capital and low/non-interest bearing deposits is collapsing with BBSW. Likely massive credit losses ahead.

Don’t think it’s all reflected in the share price yet so a sell for me

 

I have a fair number of shares in NAB - looks like have to bunker down for a while

 

Speaking of capital raising can someone explain this if you are a current holder.
From what I've seen elsewhere shareholders get a chance to buy more shares at a price less than what's listed on the asx.

If a shareholder buys more at the lower price how long must they hold those shares before selling? What happens if they sell the next day?

 

And who's to say that $0.30 won't turn out to be the annual dividend.

 

Very much expected.. my base level assumption is that bank profits will halve for this year at least, along with dividends, and this is reflected in the valuation of current share prices.

I think NAB will stick to it's current policy of paying the same amount per half. Say 60c dividend on NAB at a share price of $15.00 is 4% yield.

 

The results where due may 7, but the early release is strategic to get 1st mover advantage, the rest may have bad results which could instigate a bigger sell off in coming weeks. Chickens are coming home to roost I have been warning people to stay away from banks and index followers heavily weighted in banks for 5 years . It is not just the results it is an esculation in trend.