The National Australia Bank Ltd (ASX: NAB) share price has risen close to 4% today as investors reacted to the report from the Royal Commission.
NAB is one of the four largest financial institutions in Australia in terms of market capitalisation, earnings and customers. However, in 2018, it was Australia’s largest lender to businesses and has operations in wealth management and residential lending.
NAB shares rise 4%
The NAB share price has risen 3.7% today despite Commissioner Hayne heavily criticising the bank’s CEO and Chairman for their lacklustre parts in the Royal Commission.
Due to that telling off, NAB underperformed its peers today, the Commonwealth Bank of Australia (ASX: CBA) price rose 4.4%, the Australia and New Zealand Banking Group (ASX: ANZ) share price increased by 6.2% and the Westpac Banking Corp (ASX: WBC) share price gained 6.8%.
But, NAB had a much better day than mortgage brokers, including Mortgage Choice Limited (ASX: MOC) which face losing trail commissions from new loans as of mid-next year.
Overall, NAB has not had a great time in the Royal Commission but it may be able to put the issues behind it once if finishes refunding customers. But at this stage I wouldn’t call NAB a clear buy due to the costly remediation that continues and the falling Australian house prices.
2 ASX growth shares that could be better choices than NAB
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