The National Australia Bank Ltd (ASX: NAB) share price hit a new 52-week low of $22.76 today as sentiment turns sour amid a ballooning list of worries both home and abroad.
In Australia investors are worried about rising risk and compliance costs for the banks as a result of recommendations from the Royal Commission, the effect of falling house prices on banks' balance sheets, and rising wholesale funding costs crimping the banks' net interest margins, which are a key measure of profitability.
If that wasn't enough investors overseas are worried about the potential for a recession in the US as the Fed lifts interest rates, while the US continues to add to its debt pile via a huge trade deficit with China in addition to other negative ongoing fiscal imbalances.
Investors in the NAB, Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) can probably expect sideways share price movements and decent dividends as a best case scenario in 2019.
However, if house price falls worsen we could see more NAB share price falls ahead.
