National Australia Bank Ltd (ASX: NAB) shares are sitting at a price that has me looking again.
The bank offers a solid dividend, a reasonable valuation, and an advantage that sets it apart from the rest of the big four.
Here is why I would buy NAB shares today.
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The part of NAB I like most
NAB has a leading position in Australian business banking. That gives it access to customer relationships that can stretch well beyond a single loan.
A business may need transaction accounts, deposits, equipment finance, working capital, payment services, foreign exchange, and advice as it grows. The more of those needs NAB can handle, the deeper the relationship can become.
That is a more interesting growth opportunity to me than competing aggressively for every available mortgage.
Importantly, this focus has been successful. For the first half, NAB reported that its Business and Private Banking division grew lending balances by 4.6% during the six months to March 2026, while deposits increased by 5.9%.
The bank has also been investing in digital tools that allow customers to complete simple tasks more quickly, leaving bankers with more time to work through complex financial needs.
More than 80% of lending applications in the division were submitted digitally during the first half. I like that combination of better technology and relationship banking because it can improve efficiency without removing the personal support many business customers value.
Does the NAB share price valuation stack up?
NAB shares are trading around $39.30.
Based on CommSec consensus estimates, the bank is expected to generate earnings per share of $2.43 in FY26 and $2.53 in FY27.
That places the shares on price-to-earnings ratios of approximately 16.2 times FY26 earnings and 15.5 times FY27 earnings.
I would call that reasonable rather than exceptionally cheap.
The dividend strengthens the case. Forecast dividends per share of $1.70 in FY26 and $1.72 in FY27 imply dividend yields of around 4.3% and 4.4%, respectively.
For investors eligible to benefit from franking credits, the after-tax income could be even more attractive.
A simpler bank could be a better bank
NAB is also trying to reduce the complexity that has accumulated across its operations.
It had 27% fewer products in the first half than it did in FY22 and had decommissioned approximately 500 legacy applications since October 2023.
Removing old systems and overlapping products can help the bank serve customers faster, lower operating costs, and introduce new technology more easily.
The benefits may arrive gradually, but banking rewards small improvements made across millions of customer interactions. A smoother account opening process or faster lending decision can make a meaningful difference when repeated at scale.
Foolish takeaway
The major banks are often grouped together, but I think NAB's business banking position gives it a distinct route to growth.
Its customers can require a wide range of financial services as their businesses develop, creating opportunities for deeper relationships and greater revenue over time.
At $39.30, investors are receiving a forecast yield above 4% while paying a valuation that I find reasonable for the quality of the franchise.
NAB still needs to manage credit quality, competition, and its technology overhaul carefully. Even so, I think the balance between income, valuation, and long-term opportunity makes the shares a buy.
