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.”
