australian banks

Credit Snapshots from March 2018

Jonathan Rochford

The increasing gap between US dollar Libor and overnight index swaps (OIS) this year is garnering much attention as it was one of the earliest signs of problems in 2007. Libor is a compilation of the interest rates that major global banks charge when lending to their peers. The OIS... Show More

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Why the banks are cutting mortgage rates

Stuart Jackson

After raising standard variable rates on interest only and investment property mortgages in 2016 and 2017, the big banks have recently unwound some of these increases. This has surprised some observers. So, what’s going on? Show More

mortgage rates australian banks

Facebook’s Cambridge Analytica Scandal, Crypto Bans Escalate, Royal Commission Revelations

Kent Kwan

Get the investor scoop on a scandal-heavy week involving Facebook, cryptocurrency, and Aussie banks. What does it all mean for investors? Show More

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Bank Note$: Mentioned in despatches

Bell Potter

December 2017 reporting wrap: Fundamentals sound. The recent reporting period was generally positive with few surprises. NIM benefited from lower funding costs, deposit mix, easing liquidity drag and stable lending spreads, and the domestic retail and business banks contributed to the bulk of NIM/NIE improvements. However, non-interest income was impacted... Show More

australian banks ASX:MQG ASX:NAB Financial Sector

How bad is Australia’s mortgage stress?

Stuart Jackson

The level of household financial stress in Australia is a key issue. This is because a significant pull-back in the financial position of households would have flow-on effects across the economy. So, the recent data released by the nation’s largest lenders provides an important reading of future trends. Show More

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Better days ahead for banking

Peter Wilmshurst

The global banking sector has been undervalued since the financial crisis. However central banks are starting to increase rates and this should be positive for the sector as it will enable banks to make money out of the liability side of their balance sheet. It is hard to make any... Show More

Australia’s banks still priced for perfection

Livewire Exclusive

Markets have ‘baked in’ expectations that interest rates and inflation will stay low for a long time, but Simon Mawhinney, Chief Investment Officer at Allan Gray, thinks that assuming low rates for an extended period could be dangerous. Show More

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Can Telstra be a global technology giant?

Andrew Fleming

Another year (almost) over, and assets have again been on a tear. All ASX sectors have performed well this year, with most generating double digit returns, consistent with global experience. The other global norm is the notable sectoral exception to this great performance; Telecommunications has been the laggard, underperforming by... Show More

Bank Hybrids: The devil is in the detail.

Lachlan Hughes

We are often surprised that retail investors with whom we speak, are blissfully unaware of the risks involved in owning hybrids. ASIC and the banks have done a great job disclosing the risks, however, the message does not seem to be relayed effectively by financial intermediaries. We hope this note... Show More

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CBA becoming compelling value as the stock falls out of favour

Clime Asset Management

The central argument of our thesis on CBA has been the stock would lose most of its premium to its major bank peers as ANZ and National Australia Bank derisked and improved their profitability by correcting their strategic mistakes (eg. divesting non-core businesses), managing their capital more efficiently and resuming... Show More

Is CBA symptomatic of a perverse cycle?

Clime Asset Management

The revelations that the Commonwealth Bank of Australia (CBA) is being taken to court over alleged AUSTRAC reporting and compliance breaches will overshadow its annual result this week. The action is a civil one and a massive penalty is likely. However the monetary penalty is unlikely to affect the CBA... Show More

australian banks ASX:CBA August 2017 Reporting Season

APRA's new capital rules: initial thoughts and implications for the banks

Andrew Martin

APRA have finally come out with their capital rules to fulfil the ‘unquestionably strong’ requirement of the Financial Services Inquiry. The focus is on is the Common Equity Tier 1 ratio requirement (CET1), which is the amount of equity the banks need to hold relative to risk weighted assets (loans).... Show More

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CommSec Reporting Season Preview


Investors are expecting a lot from companies this season as they wait to see if recent share price growth will be supported by profits. We expect the resources sector to produce solid numbers while the focus on bank forecasts will be key. Show More

Spectrum Insights - The capital adequacy fallacy

Damien Wood

The recent collapse of a Spanish bank, two Italian banks, and a missed payment on tier one notes from a German bank reinforced some core beliefs for investing in bank capital. These are:- Show More

May, The Month Of Broker Downgrades

Rudi Filapek-Vandyck

...Meanwhile in the background, hidden from investors' attention which seems focused on bank levies, Trump controversies, central bank intentions and yet another terrorist act in the UK, stockbrokers in Australia have turned May 2017 into a month of downgrades. The first three weeks generated no less than 70 downgrades versus... Show More

Australian banks: little to get excited about but the derating is probably done

Clime Asset Management

Major bank equities have derated significantly over the last few weeks with a selloff in response to interim earnings results and the Federal Budget’s new major bank liabilities levy. In this report we present the main themes from the bank reporting season and explain what the new budget levy means... Show More

Australian banks– flaunting history

Damien Wood

Risk management, or the lack of it, is usually the key difference between the fortunes of banks when times get tough. History books are full of evidence of what went wrong after a financial calamity. That’s the easy part. The hard part is to foresee the problems. The high level... Show More

Could the governments lending restrictions backfire?

Stuart Jackson

The law of unintended consequences states that actions – particularly by government – can have adverse effects that are unanticipated or unintended. This law could soon play out as a result of lending restrictions placed on the major banks by the Australian Prudential Regulation Authority (APRA). Show More

australian banks ASX:ANZ ASX:CBA ASX:NAB ASX:WBC

Where are we in the banking cycle?

Livewire Exclusive

Global banks have formed a cornerstone part of PM Capital’s strategy as they’ve taken the #1 ranking in their category in the Morningstar survey over five and eight years. Following the election of Donald Trump, the Nasdaq Global Bank Index is up over 15%. So, has all the easy money... Show More

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Spectrum Insights - The problem with “bubbles”

Damien Wood

“The OECD concludes that Australia has the most over-valued housing market, with prices 52% above their ‘correct” level.“ Similar warnings continue as do the related dangers of investing in those financing the market – banks. The problem is the quote above is from December 2005. The point being, just because... Show More

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