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National Australia Bank Ltd still behind on business satisfaction

Although it has improved its standing amongst business customers, National Australia Bank Ltd (ASX: NAB) is still lagging behind its big four peers in terms of customer satisfaction, according to the monthly DBM Consultants Business Financial Services Monitor (BFSM).

While Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group (ASX: ANZ) each scored an average 7.4 out of 10 customer satisfaction rating, NAB, which remains Australia’s largest business lender, scored an average of 7.0.

The bank improved its standing amongst small and medium-sized businesses but is being dragged down by its weaker ranking amongst micro businesses, scoring just 6.9. This is a key area the banks need to focus on considering the micro businesses make up nearly 90% of all Australian businesses, according to DBM director Maria Claridad.

Foolish takeaway

National Australia Bank’s shares are currently trading at $35.36. Although the bank is trading on a lower P/E ratio than its peers (13.7), it is still above its 10-year average of 12.5 indicating that it is still an expensive time to be buying.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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