Equities
The ASX All Ordinaries index jumped to an 11-year high immediately after the Coalition won the recent Federal Election. It was boosted in particular by share price spikes in the big banks and health insurers. Whether these gains are sustainable remains to be seen.The results from the Federal Election not... Show More
Macro
First regulators capped how much banks can lend to homeowners. Now, it appears it will be up to the banks to set the limit. Bankers being bankers, they will likely up the size of home loans, chase market share, and crank up lending once again. This is not the only... Show More
Equities
Australia’s four major banks have now reported their interim results. Common to all of them were three key themes, which are presenting both challenges and opportunities. Generating any revenue growth is becoming increasingly challenging Once one-off remediation and profits on sale of businesses are stripped out, revenue growth for Australia New Zealand... Show More
Equities
The recent bank reporting season was highly anticipated as it was the first since the Banking Royal Commission final report. Although these results were impacted by divestments from non-core operations, remediation charges and Royal Commission related expenses; investors were primarily interested in the underlying trends in the ‘key drivers’ of... Show More
Equities
Last week, the National Australia Bank (ASX:NAB) released details of the customer remediation charges it expects to take in its 2019 interim result following the Royal Commission into Financial Services. NAB will provide additional detail in its interim result, which is released to the market on 2 May.NAB announced an... Show More
Equities
NAB has today announced after-tax remediation costs of $525m (91% wealth-related and the balance being banking-related) that will reduce 1H19 cash earnings by $325m and discontinued operations earnings by $200m (total remediation costs as at 31 March 2019 now just over $1.1bn). Excluding these items, underlying costs appear to have... Show More
Expert Insights
Market liquidity and company profits are the twin engines of a bull market. So with liquidity draining, will profit growth be enough to sustain the market? We asked David Poppenbeek from K2 Asset Management for his view on company profits in a recent discussion, and came away with reason for... Show More
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
Asset Allocation
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