National Australia Bank Plans A$2.5 Billion On-Market Share Buyback

   By Alice Uribe

SYDNEY--National Australia Bank Ltd. plans a 2.5 billion Australian-dollar (US$1.85 billion) on-market share buyback and to purchase shares on-market alongside its dividend reinvestment plan.

The lender on Friday said the buyback will start in mid-to-late August and would help move its Common Equity Tier 1 capital ratio towards its target range of 10.75-11.25%.

"Our target CET1 range reflects a balance between retaining a strong balance sheet through the cycle, supporting growth and recognizing the importance of capital discipline to improve shareholder returns," NAB Chief Executive Ross McEwan said.

"We consider the on-market buyback to be the most appropriate mechanism to achieve our previously stated bias towards reducing share count."

NAB had a reported CET1 capital ratio of 12.37% at Level 2 and 12.40% at Level 1 at the end of March. The buyback will reduce the CET1 capital ratio at Level 2 by around 60 basis points, the lender said.

The timing and number of shares purchased under the buyback will depend on market conditions, the prevailing share price and other considerations, NAB said.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

July 29, 2021 19:15 ET (23:15 GMT)

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