NAB Share Price Up 1.22% after a Positive Week [ASX:NAB]
NAB’s share price [ASX:NAB] has jumped up a notch by $1.22 in late morning trading and is sitting at $28.20, at time of writing.
This marks another bright week for the banking titan’s share price, which has enjoyed a relatively positive 2019, having risen 17% since the beginning of the year.
NAB welcomed its appointment of Ross McEwan as its new chief executive last week. While a broker note from UBS showed that it was retaining a sell rating on the stock, a point was made to describe the appointment as a ‘big step in the right direction.’
Analysts praised Mr McEwan’s experience with the Royal Bank of Scotland, and even going so far as to say that the banking environment was three to five years ahead of Australia’s.
Why is NAB surviving?
After the royal commission, the weather was looking pretty stormy for the Big Four — including NAB.
However, in a turn of irony, it’s possible that some banks potentially benefited in an odd way. By avoiding the negative media coverage their competitors suffered (such as AMP), big players such as NAB may be able to recapture the hearts of Aussies once more. But only if they’re able to patch up their past errors, and redesign the way they serve the public.
From observing NAB’s positive price action throughout 2019, it seems that this phoenix could be about to rise from the ashes.
And USB’s broker note indicates that it’s the new CEO who could help lead the charge. Analyst Jon Mott stated:
‘We believe Ross McEwan’s experience in turning around RBS in this environment gives him a unique insight into the challenges ahead. As a result, we believe NAB’s restructuring initiatives are likely to accelerate once he commences in 2020 and are centred around the customer. We do not expect a simple continuation of NAB’s current strategy.’
What’s Next for NAB?
The Australian Foundation Investment Company (AFIC) have also publicly stated that McEwan could signal a turnaround for the big bank.
With this widespread belief in NAB’s future from different partiers, it could be worth taking a relook at NAB and seeing if the risk is once more worth the investment.
For Money Morning
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