0559 GMT - NAB's bear at Citi sees pressure on dividends if Australia's central bank delivers interest-rate cuts on a scale widely anticipated by economists. Analyst Thomas Strong writes in a note that NAB's first-half core earnings held up reasonably well, but that there may have been a benefit from a cost skew toward the second half. The outlook for that period, and beyond, gets tougher given that the Reserve Bank is expected to resume rate cuts next week. NAB sees a terminal cash rate of 2.85% and Citi thinks 3.1% is more likely. Strong sees anything on this scale pressuring forward earnings and the sustainability of NAB's dividend. Citi has a sell rating and A$30.50 target price on the stock, which is up 1.9% at A$36.54. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
May 08, 2025 01:59 ET (05:59 GMT)
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