Why the NAB (ASX:NAB) share price is at a 52-week high

The National Australia Bank Ltd (ASX: NAB) share price is at a new 52-week high today. Here's what's been going right for this ASX bank

| More on:
CBA share price money laundering asx bank shares represented by large buidling with the word 'bank' on it

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The National Australia Bank Ltd. (ASX: NAB) share price had a pretty flat day today. NAB shares have risen 0.03% at the time of writing to $27.24 a share. But zooming out, and the picture looks a whole lot rosier. NAB shares are now up 3.77% over the past month, 18.7% year to date, and 65% over the past 12 months. At the present levels, NAB shares are actually sitting at a new 52-week high. Well, almost. The actual 52-week high was hit yesterday when NBA topped out at $27.30. But at $27.24 today, we can safely say the company is still at its high point for the year.

At this level, NAB is essentially sitting at the same level it was back in February 2020, just before the pandemic struck. That's a pretty remarkable turnaround if we stop and think about it. In saying that however, we are still nowhere near NAB's all-time high. NAB was even trading close to $30 a share in the latter half of 2019. And going all the way back to 2015, that's when we saw this ASX bank at around $37 a share. But NAB's all-time high? For that fabled event, we have to backtrack all the way to 2007 – just before the onset of the global financial crisis. Back then, NAB shares were seeing highs of $42 a share. That's still a long way off of where we are today.

But that's enough history. So why are NAB shares back at their pre-COVID levels today?

Why is the NAB share price at a 52-week high?

Well, it probably comes down to economic growth. NAB, as a bank, is highly tied to the performance of the overall economy. And the economy is doing well, much better than we all thought was possible in fact. Just today, the Reserve Bank of Australia (RBA) held its monthly meeting for May. It revealed that it has upgraded its growth forecasts for the Australian economy, and is now predicting growth of 4.75% this year. That's 'gangbusters' kind of growth, although slightly tempered by the fact that the economy went backwards hard last year.

Also helping is the booming property market. Housing has also been going gangbusters. And higher house prices usually translate into more borrowing, as property investors take advantage of higher leverage opportunities. Especially if you throw in an interest rate that's pretty much zero (well, 0.1%). More borrowing is of course, great for NAB.

And now we have a recipe for an ASX bank hitting a new 52-week high. At the current NAB share price, the bank has a market capitalisation of $89.9 billion, a price-to-earnings (P/E) ratio of 15.11 and a trailing dividend yield of 2.2%.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 3 April 2025

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

Woman and man calculating a dividend yield.
Bank Shares

2 ASX 200 bank stocks to sell today: Bell Potter

Bell Potter forecasts more headwinds in 2025 for these two ASX 200 banks.

Read more »

Two boys lie in the grass arm wrestling.
Share Market News

Regional bank battle:Bendigo Bank or Bank of Queensland shares?

Looking outside the big four? These two regional banks might be worth considering

Read more »

A man watches the share price movement closely.
Bank Shares

I want to buy CBA shares. What price should I pay?

What would be a good valuation to buy CBA at?

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Bank Shares

ANZ shares: Buy, sell, hold?

With the ANZ share price in retreat, the bank stock’s dividend yield is now at 6.2%.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Bank Shares

Is the CBA share price a buy amid the global tariff sell-off?

Are CBA shares now a bargain after some volatility?

Read more »

Happy young couple saving money in piggy bank.
Bank Shares

$10,000 invested in ANZ shares 5 years ago is now worth…

Was it a smart move? Let's run the numbers.

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Bank Shares

ANZ share price sinks on APRA bombshell

Let's see what the big four bank has announced this morning.

Read more »

three businessmen stand in silhouette against a window of an office with papers displaying graphs and office documents on a desk in the foreground.
Bank Shares

Westpac shares marching higher amid latest executive shakeup

With today’s announcement, Westpac continues to reshape its top level leadership.

Read more »