Earlier today, Westpac Banking Corp (ASX: WBC) released its full-year results and reported strong profit and dividend growth for the 12 months ended 30 September.
If you own National Australia Bank Ltd (ASX: NAB) shares, you may be wondering if it will do the same when it releases its own set of results later this week.
Ahead of the release on Thursday, let's see what the market is expecting from this big four bank.
Image source: Getty Images
NAB results preview
According to a note out of Goldman Sachs, its analysts are forecasting cash earnings (before one-offs) of $7,896 million. This will be an 11% increase on the prior corresponding period.
It will also be a touch ahead of the consensus estimate, which currently sits at $7,795 million.
Goldman expects this to be underpinned by double-digit top-line growth. It is forecasting total income of $20,951 million, which is up 14.5% on last year's numbers. Once again, this is a touch ahead of the market's expectations, with the consensus estimate currently $20,857 million.
Goldman's estimate comprises a 12.8% lift in net interest income to $16,750 million and a 22% jump in non-interest income to $4,201 million.
The broker expects this to support the payment of a final fully franked dividend of 83 cents per share, bringing its total dividends to $1.66 per share for the year. This is a touch lower than the consensus estimate of $1.67 per share.
Unfortunately, unlike Westpac this morning, its analysts don't believe NAB will return additional funds via a share buyback.
Are NAB shares a buy?
Goldman currently has a buy rating and a $30.73 price target on NAB's shares.
This implies a potential return of 5% from current levels but increases to 10.5% including forecast dividends.
