Business · Markets · 1 hr ago
NAB shares fall 22% from their 52-week high as investors weigh risks
National Australia Bank shares have fallen from a 52-week high of $49.45 to about $38.62.
NAB is a major Australian bank with business banking, mortgages and deposits as key parts of its business.
The Reserve Bank of Australia has been raising interest rates to bring inflation under control, and more increases may follow.
Higher rates can help banks if lending rates rise faster than what they pay depositors, but competition and pressure on borrowers can limit gains and increase bad debts.
The analysis argues that NAB’s established business banking position and lower share price make the stock more reasonably valued.
Analysts forecast modest earnings growth and fully franked dividends of $1.70 per share in FY26 and $1.72 in FY27.
The outlook is uncertain, and the analysis expects the coming year to be challenging for banks, with earnings growth likely to remain modest.
National Australia Bank shares are trading around $38.62, about 22% below their 52-week high of $49.45.
Investors have become more cautious about the economic outlook as interest rates rise.
Higher rates could support bank margins, but competition for deposits and mortgage customers may limit the benefit.
More expensive loans could also reduce credit demand and increase bad debts if household and business finances remain under pressure.
A Motley Fool AU contributor says the lower share price offers a more reasonable entry point, while warning that earnings growth may be modest.
- Who
- National Australia Bank and its shareholders.
- What
- NAB shares have fallen about 22% from their 52-week high as investors weigh economic and interest-rate risks.
- When
- The article was published on 13 October 2026; the share price cited was for Tuesday.
- Where
- Australia; NAB shares are listed on the ASX.
- Why
- Investors are cautious about the economic outlook and the effects of rising interest rates on borrowers, lending and bank profits.
This story does not have two clearly opposing sides.
The Reserve Bank of Australia is raising rates to bring inflation under control.
NAB shares were trading around $38.62, below their 52-week high of $49.45.
- Current share price
- Around $38.62
- 52-week high
- $49.45
- Share decline
- Approximately 22%
- FY26 EPS forecast
- $2.38
- FY27 EPS forecast
- $2.54
- FY27 dividend forecast
- $1.72 per share
What people are saying
I would not expect particularly strong earnings growth while the economy adjusts to higher borrowing costs.
I think NAB shares are worth buying around $39.
Sources
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