The NAB result is in and it’s in line with expectations. The result was hit by preannounced restructuring charges. Cash earnings came in at $2.579bn down 16% and were in line with an expected $2.571bn. Statutory profit was up 2% to $2.583bn and its dividend was flat at 99c. NAB opting to make no changes to their dividend similar to ANZ. The main news from the result was NAB’s decision to divest MLC and implement massive technology upgrades during the year. It has had a massive impact on its HY result after incurring restructuring costs of $755m. It also involved shedding 6000 jobs over the next three years but will add 2000 new tech staff.

Cash ROE was 11.4% and above an expected 10.5%. Group NIM was stable. CET1 ratio was 10.2% up 10bps which was a touch better than expected. NAB also reaffirmed expense growth of between 5%-8 % in FY18.

It was a solid result with no real surprises. The result was as expected on almost every front. Cash earnings were stable and the restructuring costs were all previously announced. Revenue was up with higher margins. NAB is looking a lot stronger and has robust fundamentals. It continues to deliver good growth. Like ANZ, NAB has said that it will continue to learn from its mistakes and respond by making changes to customers and restore trust lost after the Royal Banking Commission. Whilst offloading its wealth management business MLC, it will keep its stockbroking arm JBWere and nabtrade. Overall a good result, NAB should trade flat to higher on the open.

On the chart, NAB is trending sideways. At $29.58, its share price was at this level back in 2000, 2005 and 2007. We’d need to see a break out either up or down before we can confidently say it’s a Buy. The stock is also trading slightly above its 50 day EMA. It has acted as both resistance (ceiling) and support (floor) because NAB has largely traded sideways.