In an ASX listing on Thursday, NAB confirmed an on-market share buyback of 86,925,469 ordinary shares worth $2.5 billion.
NAB further announced that it will commence a subsequent on-market buyback of up to $2.5 billion, bringing the total potential combined size to $5 billion, which is expected to commence following its half year results announcement on 5 May.
According to the big four banks, the further buyback will allow NAB to continue managing its Common Equity Tier 1 (CET1) capital ratio towards its target range of 10.75-11.25 per cent over time.
“Our capital management strategy reflects the importance of maintaining a strong balance sheet through the cycle while allowing us to continue to support growth and deliver improved shareholder returns,” NAB group chief executive officer Ross McEwan, said.
“The further $2.5 billion on-market buyback announced today supports our ambition to reduce share count and increase sustainable ROE benefits for our shareholders.”
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
