The National Australia Bank Ltd (ASX: NAB) share price is dropping lower on the day of its annual general meeting.
In morning trade the banking giant's shares are down 1% to $23.60.
For investors that are interested, I have picked out three key takeaways from the event. They are as follows:
~90% of customers are off COVID-19 loan deferrals
The bank's CEO, Ross McEwan, revealed that around 90% of its customers that were on a COVID-related loan deferral are now getting back to normal.
He commented: "It is pleasing that around 90 per cent of customers who were on deferral are getting back on track with their payments."
Though, Mr McEwan acknowledged that some customers are still struggling and the bank intends to support them.
"Despite the positive signs, some are not yet through the worst. We are resolute in helping them. In the past few weeks, I have written to 5.8 million customers, to personally outline this commitment. In almost all cases, what has happened during COVID-19 has not been their fault. Most will just need a bit more time to recover. But some customers' situations have changed permanently. We will work with them to help them protect their equity. That's the responsible thing to do," he explained.
Growth opportunities lie ahead.
The chief executive is positive on NAB's long term prospects and has set a clear plan for the bank to achieve a sustainable performance.
He explained: "While revenue headwinds from low credit growth and ultra-low interest rates remain, we see opportunities for growth in our core banking businesses; NAB, BNZ and UBank. As we lift performance, we expect to have the opportunity to return more profit to you, our shareholders."
Dividend increases could be coming.
Mr McEwan accepts that many investors choose to invest in the banks for their dividends. Pleasingly, as alluded to above, he expects the bank to start paying a higher proportion of its earnings out to dividends again in the future.
"We are a dividend-paying stock and we will resume paying at higher levels when it's right to do so. Achieving double-digit cash return on equity will be a key measure of our success. Cost and capital discipline are essential to delivering better returns. It is our responsibility to spend NAB shareholders' money very carefully. I expect each and every dollar spent to be justifiable. That is my obligation and commitment to you," the CEO said.
