National Australia Bank Ltd (NAB.AX), the third-biggest lender in the country, on Thursday posted a 10% jump in a key third-quarter profit measure and predicted a strong rebound for the Australian economy once ongoing coronavirus lockdowns are eased.
Australian shares rose on Thursday, buoyed by robust earnings by blue-chip companies, while sharp jumps in banking and gold mining stocks also added to the gains. The S&P/ASX 200.
ASX 200 flat, Suncorp surges, NAB makes Citi acquisition fool.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com.au Daily Mail and Mail on Sunday newspapers.
The NAB share price increased by 0.6% today after the bank announced a share buyback.
NAB said it’s going to buy up to $2.5 billion of its shares on-market to progress managing its common equity tier 1 (CET1) towards its target range of 10.75% to 11.25%. It expects to commence its buyback in the second half of August 2021.
The major bank said that it continues to operate well above APRA’s unquestionably strong benchmark of 10.50%, with a reported CET1 capital ratio of 12.37% at level 2.
NAB said that the $2.5 billion buyback will reduce the CET1 capital ratio by around 60 basis points. After the sale of MLC Wealth to