The recommendations of the final report by the Royal Commission into Financial Services were far more benign than the market feared. And that’s seen an immediate bounce in bank share prices. Can shareholders now relax? Show More
australian banks
Forecast for shares income, including from the banks, remains solid. For the “glass half empty” thinkers, there is plenty of bad news to focus on in 2019 – the Trump trade war, Brexit, falling house prices, the final report of the Financial Services Royal Commission, political risk and more. Show More
Slowing growth and tightening profit margins, customers entering financial stress and falling asset values; It sounds like the recipe for a disastrous investment but what if the price of the investment has factored in something even worse, which failed to eventuate? Show More
2019 is just a few months away. So when we sat down with Natalie Tam, Investment Director at Aberdeen Standard Investments, we took the opportunity to ask her what she thought the key market issues could be next year. She touches on 5 key issues including the prospect of a... Show More
It’s always a relief to wake up from a nightmare and while we believe that the nightmare for property investors may have only just begun, there may be relief, or even a silver lining, in the form of lower bank share prices. Show More
Numerous academic and industry research papers support the view that effective corporate governance has a significant impact on the performance of that company as an investment. So when we spoke with their Natalie Tam from Aberdeen Standard Investments, we asked her how she thinks about this issue. Show More
Financials are deeply unpopular given the fallout from the Royal Banking Commission, pending legal actions and the prospect of being a political football into the 2019 election. So why is Aberdeen Standard Investments overweight financials in their small cap strategy? We sat down with Natalie Tam to find out. Show More
Three of the tailwinds for ASX investors across the past decade — policy with respect to interest rates, trade, and regulation — have turned into headwinds. While profit may be hit, it is also likely that multiples will revert to something more like normal. Show More
Australia has had a multi-decade love affair with credit, where we've gone from households being quite under-leveraged because we had financial regulation and credit rationing, to a ‘go for your lives’ scenario. It turns out when you let people borrow as much as they want, they borrow a lot. So... Show More
While you may not follow movements in the bank bill swap rate (BBSW), right now they are worth paying attention to. You see, rates are on the rise. And that means the funding costs for our major banks are also going up. This could force them to raise mortgage rates... Show More
Since peaking in March 2015, the share prices of our major banks have been plummeting. I fear there is more bad news ahead with the markets beginning to catch up with factors that will limit the banks’ ability to grow their mortgage books as quickly as they have in recent... Show More
The statistical release of APRA and the RBA’s credit growth data for April shows a stabilisation in the rate of overall mortgage, personal and business loan book growth at 5 per cent across the overall Australian market. By category, mortgage book growth continued to slow, increasing 6 per cent year... Show More
It would be understandable if investors with large holdings in the four major commercial banks spent much of their time reviewing the recent mixed earnings results and negative newsflow from the Royal Commission. However, the vast amount of negative media and analyst coverage makes it tempting to spend too much... Show More
Financial services have been making headlines for all the wrong reasons in recent weeks. Following Rowena “Shock and” Orr’s public shellacking of the wealth management industry, AMP Limited has since lost almost its entire board of directors, as well as a big part of the executive team. The banks were... Show More
In the midst of the Royal Commission into Misconduct in Financial Services, the major banks have released their latest half yearly results. The market headed into the reporting period with a high degree of apprehension given the public backlash emanating from the revelations coming from testimony at the Royal Commission... Show More
In Paisley 80 years ago, a woman became ill after being served ginger beer from a bottle containing a decomposing snail. The ensuing claim for damages resulted in a lengthy legal process resulting in success for the claimant. This precedent created a legal risk associated with poor quality service and... Show More
In our latest 50-page report for funds and institutional investors, Chemical Change, we’ve conducted a detailed consideration of shifts in mortgage lending standards, and the likely outcomes from these changes. Highlighted below are three immediate implications. Show More
In this video I discuss the banks. They have dominated the media headlines for all the wrong reasons recently. Given this backdrop, first half results come at a very interesting time. Show More
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
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
