NAB's $1.5bn increase in on-market share buy-back

National Australia Bank (ASX: $NAB) has announced a $1.5 billion increase in its on-market buy-back of ordinary shares to manage its Common Equity Tier 1 (CET1) ratio towards its target range of 11.00-11.50%. The increased buy-back, which commenced in late August 2023 and has completed $1.3 billion as at 31 March 2024, is expected to be undertaken over the next twelve months from today.

NAB Group CEO on capital generation and share count reduction

Our continued focus on capital generation supports our objective to reduce our share count over time through on-market buy-backs, while maintaining a strong capital position.

Summary of NAB's increased on-market share buy-back

National Australia Bank (ASX: $NAB) has increased its on-market share buy-back by $1.5 billion to manage its CET1 ratio towards the target range of 11.00-11.50%. The increased buy-back, expected to be completed over the next twelve months, aims to reduce the share count over time while maintaining a strong capital position. NAB reported a CET1 ratio of 12.15% and 11.85% at Level 2 and Level 1, respectively, as at 31 March 2024. The remaining $1.7 billion on-market buy-back is projected to reduce the CET1 ratio by approximately 40 basis points at Level 2 and approximately 44 basis points at Level 1. The timing and actual number of shares purchased under the buy-back will depend on market conditions, the prevailing share price, and other considerations.