The National Australia Bank Ltd (ASX: NAB) share price fell by over 1% today even though the AGM was positive.
An annual general meeting (AGM) is a chance for management to tell shareholders about its performance in the last financial year and about outlook for the future.
NAB’s progress outlined in the AGM
The bank told investors that it is a much more focused and capable organisation than it was three years ago.
NAB pointed to a track record of disciplined execution, and delivering sustained performance, while maintaining “strong balance sheet settings” and “keeping the bank safe”.
It said that loans are approved more rapidly and digital banking is “more resilient” thanks to investment in NAB’s underlying technology, as well as its digital, data and analytics capabilities.
The bank was able to say that it’s generating improved earnings, with all of its businesses contributing to underlying profit, with “significant and sustainable momentum across the group.”
Thoughts about the outlook
NAB said that the Australian economy is resilient, and it’s in a strong position to take on challenges that arise.
The bank believes that the very low unemployment rate will continue, as well as “robust business conditions”, though slower than 2022. While there are headwinds for the economy, NAB is still expecting growth – meaning that there won’t be a recession.
A key focus for the bank is “getting the basics right more often”.
My thoughts on the NAB share price
With a strong performance over the past six months from NAB shares, I’m not sure what the next six months are going to look like.
I think that NAB could be the best banking choice. I believe it’s much higher quality than Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ), particularly in the leadership department. But, it seems much better value than Commonwealth Bank of Australia (ASX: CBA).
There could be tricky times ahead, but I think NAB’s settings leave it well placed to handle whatever happens next.