Rewind the clock to early 2020 and the outlook for ASX bank shares was grim. The COVID-19 pandemic had just begun sweeping through global markets, fears of a housing collapse were mounting, and the big four banks — long seen as pillars of strength — suddenly looked vulnerable.
But while many investors ran for cover, a brave few saw an opportunity.
National Australia Bank Ltd (ASX: NAB) shares were changing hands for just $15.62 in April 2020. And for those who took the plunge, the rewards have been substantial.
$20,000 invested in NAB shares in April 2020
If you had invested $20,000 into NAB shares five years ago, you could have snapped up 1,280 shares — and still had enough spare change for a coffee.
Fast forward to today and the NAB share price is trading at $34.38. That's despite falling around 17% from its high of $41.68 earlier this year during the market selloff.
Even with that recent pullback, your $20,000 investment would now be worth approximately $44,000 — more than doubling your money in five years.
The power of patience
Back in 2020, many investors feared the worst. Would rising unemployment trigger mass mortgage defaults? Would the banks be forced to slash dividends indefinitely? Was this the end of Australia's housing boom?
In the end, none of those fears materialised. The big four banks — NAB included — managed to avoid any major bad debt blowouts. The housing market not only held firm, but went on to set new records. And the banks emerged from the crisis more resilient than ever.
It was a classic example of how long-term investors are often rewarded for staying calm when others panic.
Don't forget the dividends!
Of course, capital gains are only part of the story. One of the key reasons investors own bank shares is for their generous, fully franked dividends — and NAB hasn't disappointed.
Over the past five years, NAB has paid out a total of $6.74 per share in dividends. Multiply that by 1,280 shares and you've collected $8,627 in cash payments alone — not including franking credits.
When you combine those dividends with the capital gain, your total return climbs to approximately $52,600.
Foolish takeaway
Five years ago, buying NAB shares felt like a risky move. But in hindsight, it was a masterstroke — a reminder that great opportunities often come dressed in uncertainty.
While markets remain volatile in 2025, investors can take comfort in knowing that quality businesses like NAB have proven time and again that they can weather storms, adapt to change, and continue to reward shareholders over the long term.
As always, the market rewards those with patience, perspective, and a willingness to act when others hesitate.
