National Australia Bank's chief executive just sold 31,000 shares on-market
Andrew Irvine sold the shares for tax reasons according to a spokesperson.
Worries that big bank shares might be overvalued won't be helped by a disclosure that National Australia Bank's (ASX: NAB) chief executive Andrew Irvine sold 31,000 shares on market last week.
The sale, disclosed to the ASX on Monday, saw Irvine earn cash proceeds of $1.1 million and equalled around 20% of the 156,317 shares he owned outside those issued as part of the bank's long-term or variable incentive plans.
A spokesperson for the NAB said the share sale relates to Irvine's tax obligations. Irvine started the chief executive role in April 2024.
NAB shares have tumbled around 10% since it closed at $39.51 on February 18, the day before its first quarter trading update revealed slightly softer-than-expected profit margins as funding costs finished higher than expected and mortgage lending remained competitive.
Based on a share price of $35.32 on Monday, the bank trades on 15.6x diluted cash earnings per share of $2.27 over the year to September 2024, with a yield of 4.8%.
NAB looks cheap compared to the Commonwealth Bank (ASX: CBA), which has often been referred to as the world's most expensive bank based on common valuation metrics such as price-to-earnings or price-to-book value of its total assets.
CBA shares fetched on $157.13 on Monday and have advanced 33.3% over just the last 12 months. However, CBA shares are down more than 6 per cent since they peaked at $167.92 on February 14, with Westpac (ASX: WBC) also retreating from a recent record high after its March quarter profit margins contracted.
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Tom covered markets as a Markets Reporter & Commentator at the Australian Financial Review for nearly five years. Prior to that he was the Managing Editor of The Motley Fool Australia leading a team of around 20 investment writers during a five-year period of massive online growth. Before that Tom worked in equities management at the Bank of New York Mellon in London and as a holder of professional investment qualification the Investment Management Certificate is eligible for membership of the CFA Society of the UK.
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Tom covered markets as a Markets Reporter & Commentator at the Australian Financial Review for nearly five years. Prior to that he was the Managing Editor of The Motley Fool Australia leading a team of around 20 investment writers during a...
Tom covered markets as a Markets Reporter & Commentator at the Australian Financial Review for nearly five years. Prior to that he was the Managing Editor of The Motley Fool Australia leading a team of around 20 investment writers during a...
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