The National Australia Bank Ltd (ASX: NAB) share price has been on fire recently.
In the past 3 months, shares in the banking giant have surged more than 7%.
By comparison, the broader S&P/ASX 200 Index (ASX: XJO) has only managed to scrape 3.8% higher during the same period.
So, what’s been fuelling the NAB share price?
Here’s why the NAB share price is flying
There have been several catalysts that have helped propel shares in NAB higher over the past 3 months.
Last month, NAB released a third-quarter update highlighting its unaudited statutory net profit of $1.65 billion.
In addition, the bank revealed unaudited cash earnings of $1.70 billion, which were broadly in line with results from the first half of FY21.
NAB also made headlines last month after announcing its intention to acquire Citigroup Inc’s (NYSE: C) Australian consumer business.
The bank intends to acquire the business for the price of its net assets plus a premium of $250 million.
Shares in NAB also received a boost in late July, after the bank announced a share buy-back program.
The banking giant advised that it would buy back up to $2.5 billion of its ordinary shares on-market.
NAB’s management highlighted that the share buy-back is the most appropriate way to return funds to shareholders.
Snapshot of the NAB share price
In addition to a stellar past 3 months, the NAB share price has also had an outstanding year thus far.
Shares in the banking giant have surged more than 26% since the start of 2021 and are currently nudging 52-week highs.
Additing to its slew of positive news, NAB has also been on the receiving end of favourable broker coverage.
Most recently, leading broker Goldman Sachs labelled the banking giant as a top option for income investors.
Analysts from the broker cited improved trading conditions, cost management initiatives and Citi acquisitions.
As a result, the broker imitated a buy rating and issued a $30.62 share price target on the bank’s shares.
Shares in NAB closed yesterday’s trading session at $28.67.