NAB's bland result is just what the doctor ordered
Once notorious for surprising and messy results, NAB now delivers pretty much exactly what investors expect. It's the economy that's the issue.
ANZ’s old boss Mike Smith used to say when it comes to bank results, boring is good.
Ross McEwan comes from the same school and while he didn’t come flat out and say National Australia Bank’s full year result was boring, he was at pains to point out it reflected a continuing back to basics approach, solid progress and discipline. Good, solid, boring words.
His favourite slide in the investor presentation was one showing nice, steady improvement over four years for return on equity, earnings per share and dividends per share. Moreover, McEwan resisted the urging of one analyst to see the outlook as “glass half full”, saying he was just pragmatic with an expectation of intense competition in a slowing economy.
Following NAB’s executive and board implosion after the Royal Commission into banking, McEwan was appointed to bring pragmatism. And just to underline the progress on the “no surprises” front, unlike Westpac and ANZ, NAB didn’t have to pre-announce any abnormal items.
