Why is everyone talking about NAB shares on Friday?

National Australia Bank Ltd (ASX: NAB) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $41.38. During the Friday lunch hour, shares are changing hands for $41.85 apiece, up 1.1%.

For some context, the ASX 200 is also up 1.1% at this same time.

Over the past year, however, NAB shares have significantly outperformed the benchmark index, gaining 11.4% compared to the 4.3% 12-month gains posted by the ASX 200.

Atop those capital gains, NAB stock also trades on a fully franked 4.1% trailing dividend yield. And if you owned shares at market close on 10 November, you'll be seeing the final NAB dividend payout of 85 cents a share hitting your bank account today.

But that's not why the ASX 200 bank is in focus today.

Instead, the bank is grabbing headlines following its annual general meeting (AGM).

Here's what's happening.

NAB shares in focus amid AGM

Opening the meeting, NAB chair Philip Chronican said, "Building a simpler, more modern bank is a key focus. We want our bank to be fit for the long-term and capable of delivering for customers in a rapidly changing world."

Addressing the resurgence of historic employee underpayment issues, which date back to 2012 and have thrown up past headwinds for NAB shares, Chronican said:

Unfortunately, more payroll issues were uncovered this year. In response, NAB launched a broader review into payroll-related benefits under current and historical agreements. Management is working hard to resolve and remediate these payroll issues as quickly as possible for our colleagues.

Turning to the returns delivered by NAB shares, Chronican added:

The board declared dividends for the year of 170 cents per share, in line with our target payout ratio, and returned $5.2 billion to shareholders. We retain a bias towards reducing the share count over time, which helps drive sustainable returns for shareholders.

Since August 2021, we have completed $8 billion in on-market buybacks and continue to neutralise NAB's dividend reinvestment plan.

Over the past five years to 30 September 2025, our total shareholder return reached 190%, higher than the average of 168% for NAB's major bank peers.

A word from the CEO

NAB CEO Andrew Irvine took the podium next.

He noted that across the year, "Australian business lending balances rose by 9%, and total customer deposits grew by 7%."

Commenting on NAB's market-leading business banking segment, Irvine said:

NAB improved market share in both total business lending and business deposits. Competition in business banking continues to increase and NAB competes from a position of strength. We know this market well, have a leading position and we intend to extend our position, not just defend it.

NAB shares could also enjoy longer-term support from the bank's ongoing investments into artificial intelligence.

According to Irvine:

AI is supporting fraud detection, improving cybersecurity, streamlining home loan application processes and reducing low-value work for our NAB colleagues.

We are pursuing a range of use cases for generative and agentic AI, as well as assisting our colleagues to develop the AI skills of the future.

The post Why is everyone talking about NAB shares on Friday? appeared first on The Motley Fool Australia.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.

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