National Australia Bank (NABZY) AI Stock Analysis

Company Guidance

NAB currently expects the RBA to keep rates on hold from here; internal workforce reduction by 2,500 roles, or about 6%, over fiscal '27; underlying cost growth of less than 3% in FY '27, compared with reported costs in FY '26, excluding a $300 million restructuring charge expected in the first quarter of 2027 and a $125 million impact from the software capitalization policy; investment spend of approximately $1.8 billion with an OpEx ratio of around 55% to 60%; depreciation and amortization to remain a headwind in FY '27 before stabilizing into FY '28; business credit growth to moderate to 8% in 2027, with credit growth in the Business Bank still 7% or 8% next year; Markets and Treasury revenue of around $1.7 billion, $1.8 billion a year in FY '27; replicating portfolio tailwinds estimated at approximately 3 basis points; deposit mix impact of 1 basis point or so going forward; AQ-related RWA increases of around $6.5 billion through the course of FY '27; a final 2026 DRP with a 1.5% discount expected to raise approximately $900 million or 20 basis points of CET1 capital, taking the pro forma ratio to 12.07%; term-funding issuance over financial year 2027 broadly in line with prior years; and the dividend settings remain appropriate.