James Marlay

NAB has been outperforming its peers in the last 12 months, posting the highest total return of 44%. NAB's underperformance in recent times has been attributed to its UK banking arm, with investors discounting the bank for holding the assets. However, in a reversal of fortunes, confidence and stability has returned to the UK banking sector. The UK bank index has climbed 35 per cent in Australian dollar terms, putting it ahead of the glorified Australian financials index. Considering the UK business exposure was only 2.4% of net profit, its effect has been surprising to some commentators, although its cost-to-income ratio is at 70%, much higher than the NAB group as whole which sits at 41%. The NAB's recent rise could indicate the end of the discount applied to the bank for its UK assets. (VIEW LINK)


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David Allingham

Good point Jimi, Lloyds Bank has moved very strongly and the UK government has been reducing its stake. There is clearly strong demand. A niec way to play a more broad based European recovery is through MQA which operates over 20% of France's toll rd network.

James Marlay

MQA conservative management and the better looking of the divestments from MIG. I've watched a few of their presentations and a big reference point fro investors has always been the change in volumes around trucking traffic on the toll roads. Should also add the Eagles are firming for Sunday, very strong against the Rabbits last week.